February 13 News, XRP Ledger has officially activated the Token Custody Amendment XLS-85, allowing users to create custody accounts for issued fungible tokens. This means that, in addition to XRP itself, Trust Line tokens and Multi-Function Tokens (MPT) can also be locked on-chain under certain conditions, providing more flexible asset management options for decentralized finance and enterprise applications.
The amendment regained support from 30 validators on January 30, 2026, reaching the activation threshold, and went live two weeks later. Previously, XLS-85 was close to passing in September 2025, but disagreements arose due to incompatibility issues with the MPT standard, causing support to drop to 16 votes. XRPL dUNL validator Vet pointed out flaws in custody accounting related to transfer fees and supply tracking. The community subsequently introduced fixTokenEscrowV1, incorporated into Rippled v3.0.0, restoring confidence and driving final activation.
With the new functionality in effect, the custody mechanism has been extended to Trust Line tokens such as RLUSD and MPT assets. Users can lock tokens under specific conditions for settlement payments, compliant custody, and DeFi collateralization. It is important to note that issuers must enable the relevant flags for tokens to qualify for custody; additionally, issuers cannot custody their own issued assets but can receive custody tokens.
Regarding custody types, XRPL supports three modes: time-based, condition-based, and combined custody. Time-based custody releases assets after a specified date; condition-based custody depends on cryptographic fulfillment conditions; and combined custody activates when both time and conditions are met. These mechanisms provide enhanced security and control for cross-border settlements, on-chain financing, and automated contracts.
Industry experts believe that the launch of XLS-85 marks a significant step forward for XRP Ledger in bringing real-world assets on-chain and expanding enterprise-level applications, as well as providing a more mature infrastructure for tokenized asset management.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
XRP Price: Below $1 or Spike to $2 Are Main Scenarios in Upcoming Volatility Surge - U.Today
Price squeezed
More challenges for sellers
Two opposing forces on the XRP chart, an ascending support trendline formed from the recent February lows, and a descending 26-day exponential moving average acting as resistance, are creating a compression structure, as the asset has been trading in an
UToday2m ago
XRP Price Outlook: Can it Break $3 by the End of 2026? Analysts Provide Bullish and Bearish Predictions
XRP is currently priced between $1.41 and $1.46, up about 4% in the past 24 hours but still below its all-time high. Analysts predict that if the market stabilizes, XRP could rebound to $3, while it might drop to $0.65 otherwise. Regulatory factors and the expansion of real-world applications will also influence its long-term trend. Investors should pay attention to market risks.
GateNews3h ago
XRP ETF attracts over $19 million, with AUM approaching $1.1 billion. Why does the price still hover around $1.40?
Despite XRP price pressure, investors remain interested in XRP ETFs, with approximately $19 million flowing in over the past week and total assets nearing $1.1 billion. However, XRP trading prices are still more than 60% below their all-time highs, and market sentiment remains cautious. Analysts point out that the influence of XRP ETFs is far less than that of Bitcoin ETFs. Overall, XRP's future performance is closely tied to market sentiment and Ripple's technological applications.
GateNews4h ago
