XRPL to Integrate Privacy Features for Institutional Tokenization
XRPL to Integrate Privacy Features for Institutional Tokenization
https://www.kucoin.com/news/flash/xrpl-to-integrate-privacy-features-for-institutional-tokenization
Publish Date: 2026-07-12 17:12:00
Source Domain: www.kucoin.com
Key Insights
- XRPL is introducing privacy features as blockchain developers work on confidential transfers.
- The feature aims to make XRPL tokenization more usable for institutions and attract them to the network.
- XRP has been struggling despite broader market gains, as XRPL activity has declined.
XRP Ledger developers advanced a privacy proposal designed for tokenized assets and institutional use. The XLS-96 amendment would introduce confidential transfers for Multi-Purpose Tokens on the public blockchain.
The feature would conceal individual balances and transfer amounts while allowing authorized parties to verify supply and compliance information. However, the proposal still requires sufficient validator support before mainnet activation.
XRPL Confidential Transfers Target Institutional Tokenization
According to the draft document on the feature, the Confidential MTP on XRPL is an extension of the XLS-33 (Multiple-Purpose Token) token standard introduced in October 2025.
MPTs are designed to be more efficient and enable issuance of real-world assets (RWA) on XRPL. By introducing the privacy features, the developers believe institutions can use the network tokenization capability enabled by the XLS-33.
It noted that the current tokenization feature provides transparency, meaning all balances and transfers are visible to the public. “This transparency limits adoption in institutional and privacy-sensitive contexts,” it added.
Interestingly, the Confidential Transfer feature also supports compliance, enabling users to disclose such information through various mechanisms.
This essentially means users can hide balances and transfers from the public while still disclosing them to auditors and authorities. It also provides issuers with greater control, allowing them to freeze or claw back transactions.
XRP Struggles Amidst Decline in XRPL Activity
Meanwhile, the introduction of privacy features is only the latest in a series of developments on the XRPL network. Ripple had…
