XRP Ledger has rolled out the XLS-85 upgrade, extending escrow beyond XRP to all tokens issued on the network. Until now, conditional locking and release were limited to XRP transfers. With the change, stablecoins and tokenized real-world assets can also use secure, conditional asset management directly on-chain. RippleX said XRPL now supports secure and conditional on-chain transfers for all assets, from RLUSD to real-world asset tokens.
Existing escrow transaction types remain in place
The upgrade keeps the current EscrowCreate, EscrowFinish, and EscrowCancel transaction types. Still, escrow will only work for a given token if the issuer explicitly enables it. That requirement leaves issuers with governance and regulatory control over whether the feature is available, while expanding the ledger’s technical range beyond XRP itself.
Use cases now reach token programs and enterprise finance
The change broadens what can be built natively on XRPL. Any asset on the network can now be locked for a set period and released only when specified conditions are met. The source article listed several use cases: token vesting and distribution programs, enterprise payment and settlement flows, treasury management for issued tokens, conditional stablecoin transfers, and corporate financial products built directly on XRPL.
One analyst said Token Escrow, or XLS-85, opens a new chapter by adding enterprise-ready functions to XRP Ledger’s decentralized exchange, and added that institutions could begin allocating capital directly on the ledger from February 12. The upgrade also builds on XRPL’s earlier Permissioned Domains feature, widening the network’s appeal for institutional activity.
Network activity could matter more than the upgrade alone
The source noted that XLS-85 does not directly increase demand for XRP. Still, if more token issuers and platforms start using XRPL for escrow, the network could see more token launches, higher transaction volume, and growth in active accounts. Stablecoin issuers, real-world asset tokenization platforms, and other organizations can now implement escrow for their own assets on the ledger.
XRP remains the core payment and reserve asset of the network. If fee usage and reserve requirements climb with broader token activity, that could feed into XRP demand, though the article said most observers still tie long-term price movement to actual adoption. In the short term, XRP continues to trade with the wider market. The article cited a recent price of $1.36, down 1.35% on the day.