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Reading: XLS-85 Upgrade Brings Escrow Functionality to All Tokens on XRP Ledger
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COINTURK NEWS > Ripple (XRP) > XLS-85 Upgrade Brings Escrow Functionality to All Tokens on XRP Ledger
Ripple (XRP)

XLS-85 Upgrade Brings Escrow Functionality to All Tokens on XRP Ledger

In Brief

  • XLS-85 expands XRP Ledger’s escrow feature to all tokens, not just XRP.

  • This upgrade paves the way for advanced financial products and enterprise solutions.

  • Long-term effects on XRP price depend on real network adoption and token activity.

İlayda Peker
İlayda Peker 3 months ago
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On February 12, 2026, the XRP Ledger implemented a major milestone with the rollout of the XLS-85 upgrade. With this update, the network’s native escrow feature, once limited solely to XRP, is now available for all trustline-based tokens (IOUs) and Multi-Purpose Tokens (MPTs). This breakthrough allows programmable escrow solutions to support a far wider range of digital assets across the platform.

Contents
Escrow Now Extends to Every Token on the NetworkNew Opportunities for Enterprises and Advanced Financial ProductsLong-Term Impact on XRP Price and Network Dynamics

Escrow Now Extends to Every Token on the Network

Following the XLS-85 upgrade, escrow functionality on the XRP Ledger expanded well beyond traditional XRP transactions. Until now, the system confined conditional locking and releasing of assets to XRP alone. The changes mean that stablecoins, as well as tokens representing real-world assets, can now utilize secure and conditional on-chain management directly through the ledger. This expansion opens up new trustless possibilities for a more diverse set of digital assets.

RippleX highlighted, “From stablecoin RLUSD to real-world assets, XRP Ledger now supports secure and conditional on-chain transfers for all assets.”

The upgrade also includes the existing EscrowCreate, EscrowFinish, and EscrowCancel transaction types. However, in order for escrow to function with a given token, the issuer must explicitly enable the feature. This prerequisite gives issuers continued regulatory and governance oversight while bringing increased technical flexibility to the network.

New Opportunities for Enterprises and Advanced Financial Products

This enhancement is far more than a minor tweak; it fundamentally expands XRPL’s core capabilities. Not only XRP, but any asset on the network can now be natively locked for a period and released only if specified conditions are met. As a result, the ledger is poised to power a broader array of real-world use cases.

  • Token vesting and distribution programs
  • Enterprise-grade payment and settlement solutions
  • Treasury management for issued tokens
  • Conditional stablecoin transfers
  • Direct corporate financial products on XRPL

An analyst noted, “Token Escrow (XLS-85) marks a new chapter by integrating enterprise-ready features into XRP Ledger’s decentralized exchange. From February 12, institutions can start allocating capital directly on the ledger.”

With this move, XRPL builds on its recently introduced Permissioned Domains feature by broadening the scope of its escrow capabilities. These advancements are making the platform increasingly attractive for institutional adoption and the development of innovative business models.

Long-Term Impact on XRP Price and Network Dynamics

While the XLS-85 upgrade does not directly boost demand for XRP itself, increased activity across the network and the introduction of new token offerings could produce ripple effects over time.

Now, stablecoin issuers, real-world asset tokenization platforms, and other organizations can implement escrow for their own tokens on XRP Ledger. This potentially drives a rise in token usage, elevates transaction volumes, and increases the number of active accounts on the system.

  • Token launches on XRPL may accelerate
  • Transaction volumes are likely to rise
  • Active user and account numbers could see growth
  • Fee and reserve requirements may, in turn, spur higher XRP demand

XRP remains the foundational payment and reserve asset for the ledger. While expanding ledger utility and new applications present the possibility of greater XRP demand, most observers believe that long-term price movements will depend above all on real adoption of the network.

In the short term, XRP’s price continues to reflect broader market trends. Recent trading saw the asset at $1.36, marking a daily decline of 1.35%.

You can follow our news on Telegram, Facebook & Coinmarketcap & X
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.

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İlayda Peker 13 February, 2026 - 9:38 am 13 February, 2026 - 9:38 am
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