XRP Ledger improves token escrow capabilities with activation of XLS-85
February 15, 2026
The XRP Ledger recently implemented the XLS-85 amendment, which has revolutionized how native escrow functions for Trustline-based tokens and Multi-Purpose Tokens (MPTs). This enhancement, effective as of February 12, 2026, has broadened the programmable settlement capabilities of the XRPL beyond just XRP. Now, stablecoins and other IOUs can also take advantage of secure and conditional settlements within the XRP Ledger’s ecosystem.
Before the XLS-85 upgrade, there were constraints on the availability of escrow for various tokens. However, with this new amendment in place, token issuers now have the ability to access escrow functionalities through issuer-level escrow flags. By incorporating these flags, issuers guarantee adherence to compliance and governance standards while utilizing escrow features.
By allowing escrow for issued tokens, the XLS-85 amendment brings a wealth of benefits to the XRPL ecosystem. Enhanced transaction types like EscrowCreate, EscrowFinish, and EscrowCancel have been improved to support a wider range of functionalities. This advancement is vital as it paves the way for exciting new use cases, including token vesting schedules and conditional transactions.
Overall, the activation of the XLS-85 amendment represents a significant milestone for the XRP Ledger. By expanding native escrow capabilities to various types of tokens, the XRPL has demonstrated its commitment to fostering innovation and inclusivity within the realm of decentralized finance. This latest development underscores the XRPL’s position as a pioneer in facilitating secure and efficient blockchain transactions.
The introduction of native escrow functionality for Trustline-based tokens and MPTs marks a milestone in the evolution of the XRP Ledger. With this upgrade, token issuers can now leverage escrow features to enhance security and flexibility in their transactions. The XLS-85 amendment is a testament to the XRPL’s dedication to creating a robust and versatile ecosystem that caters to the diverse needs of token developers and users alike.
In conclusion, the XLS-85 amendment’s activation on the XRP Ledger heralds a new era of possibilities for token settlement and management. By extending escrow functionalities to a wider array of tokens, the XRPL has paved the way for more secure and adaptable transactions within its ecosystem. This upgrade exemplifies the XRPL’s ongoing commitment to driving innovation and fostering growth within the decentralized finance sector.
