The XRP Ledger has activated Token Escrow (XLS-85) on mainnet, a major expansion of the ledger’s native settlement tools that now apply to tokens as well as XRP. The amendment went live on Feb. 12, 2026 after receiving 88% support (30 of 34 validators) and ships in rippled v2.5.0 under the XLS-85 spec. What changed - Escrow functionality that was previously limited to XRP can now be used for Trustline-based tokens (IOUs) and Multi-Purpose Tokens (MPTs). RippleX framed the upgrade as broadening XRPL’s settlement primitives “from one native asset to the wider token stack,” enabling on‑chain, conditional settlements for assets ranging from stablecoins (e.g., RLUSD) to real-world assets. - XRPL.org stresses the shift from off‑chain or third‑party escrow arrangements to an automated on‑ledger system — the same escrow model now applies to fungible tokens. How token escrows work - The escrow lifecycle uses the same core operations: EscrowCreate to lock funds, EscrowFinish to release them when conditions are met, and EscrowCancel to return funds if an escrow expires. For token escrows, an expiration time is mandatory. - XRPL supports time-based, condition-based (crypto-conditions), and hybrid escrows. Issuer and token requirements - Trustline tokens: the issuing account must enable the Allow Trust Line Locking flag so its token can be escrowed. - MPTs: issuers must set Can Escrow and Can Transfer flags at issuance to allow escrowing and releasing. - Issuers cannot create escrows using their own issued tokens, though they can be recipients of escrowed tokens. - Authorization gating: if a token requires authorization, the sender must be pre-authorized by the issuer to create an escrow, and must also be authorized to receive tokens back if an expired escrow is canceled (regardless of who submits the cancellation). Separately, recipients must be pre-authorized before an escrow can be finished. Fees and crypto-conditions - Token escrow is not free: creating and finishing an escrow involves multiple transactions and crypto-conditions increase costs. - The XRPL supports PREIMAGE-SHA-256 crypto-conditions today; fulfillment verification (EscrowFinish with a fulfillment) raises fees. XRPL.org gives a concrete baseline: an EscrowFinish with a fulfillment requires at least 330 drops of XRP (0.00033 XRP) plus an additional amount proportional to the fulfillment size, and the total scales with network fee settings. Use cases and significance - RippleX highlights institutional and DeFi use cases such as vesting and grants, conditional payments and OTC-style swaps, treasury workflows (legal holds, collateral), and tokenized rights or RWA unlocks. - By adding a native “lock until X” mechanism to the token layer, XRPL enables predictable, on‑ledger settlement and compliance-shaped flows without relying on off‑chain coordination or third‑party custodians — a meaningful upgrade for tokenization and institutional workflows. Market note - At press time, XRP traded at $1.35. Read more AI-generated news on: undefined/news

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