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Reading: XRP Ledger activates fix to block unauthorized stablecoin creation via burn-only accounts
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COINTURK NEWS > Ripple (XRP) > XRP Ledger activates fix to block unauthorized stablecoin creation via burn-only accounts
Ripple (XRP)

XRP Ledger activates fix to block unauthorized stablecoin creation via burn-only accounts

In Brief

  • 🚨 $XRP Ledger shut down a flaw that let burn-only accounts create new stablecoins.

  • 🔥 No exploitation or unauthorized token creation has been publicly reported.

  • 📅 A validator support dip in October delayed the patch’s activation until November 4.
Dr. Levent Kurt
Dr. Levent Kurt 9 seconds ago
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The XRP Ledger has implemented a new amendment known as fixCleanup3_4_0, addressing a critical flaw related to issued token permissions. The amendment became active on November 4 at 14:52 UTC, at ledger 108,112,129, after meeting the network’s validator approval requirements.

Contents
Key flaw in permission system resolvedValidator approval process and delayed activationAdditional transaction and lending updates

Key flaw in permission system resolved

The fixCleanup3_4_0 amendment corrects a previously undisclosed vulnerability in the XRP Ledger’s permission delegation mechanism. This system enables account holders to grant limited transactional permissions to other accounts, such as allowing trusted services to manage redemptions for stablecoins or other issued tokens.

At the center of the flaw was the “PaymentBurn” permission. Under this system, an account could be permitted only to destroy tokens (for example, when burning stablecoins during redemption). However, the old logic unintentionally allowed these burn-only accounts to create new issued tokens when burning transactions caused the account’s balance to move from zero.

With the amendment, any PaymentBurn transaction that would cross a zero balance—potentially enabling unauthorized token creation—is now automatically rejected by the protocol.

The flaw sat inside the ledger’s permission delegation system. This system lets account holders allow other accounts to carry out specific transactions without giving up full control.

Assets impacted by the fix include trust-line issued tokens, stablecoins, and Multi-Purpose Tokens. XRP itself was never impacted, as it is not governed by the same permissioning rules as tokens issued through the network’s trust-line system. Public disclosures indicate that no exploitation of this bug has been confirmed, and no issuers have reported unauthorized creation of tokens as a result of the flaw.

Validator approval process and delayed activation

Although the patch was integrated into version 3.4.0 of the XRP Ledger server software in September, protocol rules require that any amendment obtain the support of at least 80% of trusted validators for 14 consecutive days before activation. The initial voting period began on October 9, positioning the fix for late-October activation.

During this window, support briefly dipped below the threshold on October 21, causing the 14-day approval clock to reset. A new consensus among validators formed later that day, and the required two-week period was completed on November 4, triggering the successful activation of the amendment.

In situations where protocol changes can affect issued assets or network behavior, market participants benefit from tools that offer timely alerts and customizable tracking. CryptoAppsy’s smart price alerts and coin-specific news monitoring can help users follow developments around critical software amendments like fixCleanup3_4_0, enabling them to quickly identify changes or risks impacting assets issued on XRP Ledger.

Additional transaction and lending updates

Alongside the main bug fix, the amendment introduces further refinements to how the network processes certain transactions. For automated market makers, adjustments were made to ensure clawbacks do not destroy liquidity provider tokens in scenarios where rounding logic could inadvertently penalize issuers without adequate compensation.

Permissioned trading rules have also been clarified, blocking accounts from acquiring restricted tokens through certain offers. Escrow reserves, Multi-Purpose Token authorization procedures, and the construction of transaction signatures now feature added safeguards. Separate signing prefixes will prevent signatures intended for one role from being incorrectly used elsewhere.

Accounting and logic fixes have been applied to the still-under-development Single Asset Vaults and the XRP Ledger lending protocol. These changes address scenarios involving deposits, withdrawals, overdue payments, and the impact of impaired loans. However, lending features themselves remain inactive until further voting and amendment approvals are completed.

Some signing steps had used overlapping authorization structures. The update adds distinct signing prefixes so a signature meant for one transaction role cannot be reused in another.

Ripple has publicly supported the suite of lending amendments, which would allow brokers to set up fixed-term loans using assets deposited into vaults. Each lending protocol amendment must undergo its own separate approval process, including a two-week validator consensus, before it can be introduced on the main network.

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Dr. Levent Kurt 6 November, 2026 - 3:56 pm 6 November, 2026 - 3:56 pm
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Dr. Levent Kurt
By Dr. Levent Kurt
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Levent Kurt, who has been closely following the cryptocurrency and blockchain ecosystem since 2013, is the Editor-in-Chief and Co-Founder of COINTURK.Kurt, who holds a Ph.D. in Data Science, conducts research on Bitcoin, altcoins, blockchain technologies, digital asset markets, data analysis, and global developments in the cryptocurrency sector. He is the author of “Cryptocurrency Bitcoin: In Pursuit of Financial Freedom”, published in 2015.In the news, analysis, and research published on COINTURK, he aims to provide readers with reliable and understandable information by combining a data-driven approach with market experience and an assessment of technological developments.
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