TLDR
- XRPL now supports escrow for Trustline tokens and MPTs
- Token issuers must enable escrow through issuer level flags
- Upgrade supports stablecoins, RWAs, and institutional workflows
- XRP demand may rise if network activity and adoption increase
The XRP Ledger has activated the XLS-85 amendment, extending native escrow to all issued tokens on the network. The update broadens XRPL’s functionality and raises questions about whether XRP price could benefit from wider adoption.
The amendment went live on February 12, 2026. It allows escrow for Trustline-based tokens and Multi-Purpose Tokens. Until now, only XRP supported native escrow on the ledger.
XLS 85 Extends Escrow Beyond XRP
XLS-85 upgrades the existing EscrowCreate, EscrowFinish, and EscrowCancel transaction types. These functions now apply to issued tokens in addition to XRP. This change removes a long-standing limitation within the network.
Token issuers retain control over whether escrow is enabled. Issuers must activate escrow through specific flags. This structure maintains compliance controls and governance frameworks already used by token providers.
If you want regulated payments and FX onchain, you need two things: Compliance & Deep liquidity
Permissioned DEX brings both to XRPL without fragmenting capital across private systems.
Shared institutional liquidity
Instant local payout
Protocol-level policy controlThis is a…
— Antonio Kaplan (@antoniokaplan) February 11, 2026
RippleX stated, “From stablecoins like RLUSD to Real World Assets, the XRPL now supports secure, conditional, on-chain settlement for all assets.” The statement confirms that escrow can now support stablecoins and tokenized assets.
The upgrade enables time-locked and conditional transfers for a broader range of assets. Projects can design vesting schedules and structured payouts directly on XRPL. Treasury operations and institutional settlement workflows can also use native escrow features.
Institutional Focus and Permissioned DEX Rollout
The escrow update comes alongside other institutional-focused developments. RippleX engineers recently discussed compliance and liquidity as key requirements for regulated payments.
Antonio Kaplan, a RippleX engineer, noted that compliance and deep liquidity are necessary for on-chain foreign exchange. He referred to the upcoming Permissioned DEX as part of this framework.
The Permissioned DEX introduces credential-based access to order books. Regulated institutions can participate while meeting compliance standards. At the same time, the open DEX will continue operating as usual.
Kaplan stated that the Permissioned DEX will allow credential-gated liquidity on the same ledger as open markets. This structure supports verified counterparties without separating capital into private systems.
XRPL has also activated Permissioned Domains earlier this month. Together with XLS-85, these updates expand tools designed for institutional finance and tokenized assets.
Will XRP Price Benefit From the Upgrade
The activation of XLS-85 does not directly increase demand for XRP. The amendment expands escrow to issued tokens rather than increasing XRP lockups. Therefore, there is no immediate supply reduction for XRP itself.
However, broader network growth could affect XRP over time. If more issuers choose XRPL due to native token escrow, token issuance may increase. Transaction activity could also rise across the network.
Higher activity can lead to more transaction fees paid in XRP. XRPL also requires XRP for account reserves. As more accounts are created, reserve demand may grow.
If stablecoin providers and real-world asset platforms adopt XRPL, usage levels could expand. Increased usage may strengthen network fundamentals. Market participants often track adoption metrics when assessing digital asset value.
At the time of reporting, XRP traded at $1.36. The price was down 1.35% over the past 24 hours. Short-term price movements continue to reflect broader market conditions.
The long-term effect of XLS-85 depends on actual adoption. If institutions deploy capital and build products on XRPL, network activity may increase. Whether this translates into sustained XRP price growth remains tied to measurable usage and market demand.
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