A new technical proposal aims to overhaul how multi-signature transactions are managed on the XRP Ledger, targeting a long-standing coordination challenge for institutional and enterprise users.
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The “On-Chain Cosigner” proposal, submitted to the XRP Ledger Standards repository, seeks to enable native on-chain coordination for multi-signature (multisig) approvals. Its authors—Shawn Xie, Zhiyuan Wang, Chenna Keshava B S, and Mayukha Vadari—say it would eliminate the need for communication through external channels and centralized coordinators.
Currently, the XRP Ledger already allows for multi-signature transactions. However, according to the proposal, the process forces participants to coordinate and collect each signature off-chain, commonly through email or other means. This introduces additional points of failure and can complicate enterprise workflows.
On most blockchain networks, including current XRPL implementations, multi-signers are required to coordinate signatures off-chain or use smart contracts. Native on-chain coordination would offer a completely decentralized solution.
Prominent community member Vet emphasized that this proposal would address “the last mile” problem in XRPL’s multisig approach, streamlining both security and user experience for institutions controlling large pools of funds.
How the new system would work
If adopted as an official amendment, the proposal outlines a process where a participant creates a TransactionProposal object directly on the XRP Ledger. This object, containing the full transaction payload, would be permanently stored on-chain, making the transaction immutable and visible to all authorized signers.
Each party could then review the transaction and add their cryptographic signature directly on-chain. Signatures would be validated in real time as they are submitted, allowing the approvals to accumulate within the proposal object itself.
When enough signatures have been collected to meet the required threshold, any participating signer could broadcast the completed transaction to the network for execution. There would be no need for any additional manual assembly or communication to complete the process.
Mini dictionary: On-chain multi-signature (multisig) refers to the process of authorizing a transaction by having multiple private keys sign off, with all coordination and recordkeeping happening directly on the blockchain itself rather than through external, off-chain processes.
Institutional focus and next steps
The proposal particularly targets enterprise and institutional users, who often operate in regulated environments with strict custody requirements. By keeping the entire approval workflow on-chain, the system reduces risks tied to communication failures, lost signatures, or coordinators going offline.
Proponents argue this upgrade would not only enhance security but also improve efficiency for complex financial operations such as fund custody, asset management, and treasury activities.
If the amendment is adopted, organizations using the XRP Ledger would be able to structure their transaction approval workflows in a more streamlined and robust manner, without exposing themselves to vulnerabilities from external coordination.
The proposal must still undergo community review and the XRPL’s standard amendment process before any official deployment, and there has been no confirmation of a timeline for activation.
