A new amendment proposal for the XRP Ledger (XRPL) aims to give institutions the ability to hide token balances and transaction amounts, while still allowing issuers, auditors, and regulators controlled access when needed.
This institutional-grade privacy feature is now heading for a vote on XRPL, where more than $530 million in tokenized real-world assets are already held.
The recently released XRPL version 3.3.0 introduces six proposed amendments. Among them, “Confidential Transfers” stands out as a key update for institutional users. It enables encryption of balances and payment amounts for Multi-Purpose Tokens (MPTs), which Ripple has been promoting for use in financial instruments like funds and bonds.
The goal is to let institutions move assets without revealing the size of their holdings or transfers. While wallet addresses and token types remain visible, the actual values can be concealed.
Even with this privacy layer, the network can still verify transactions using cryptographic proofs that confirm accuracy without exposing sensitive data.
Ripple has been pushing XRPL deeper into tokenized finance throughout 2026. Last month, Aviva Investors launched a tokenized share class of its U.S. Dollar Liquidity Fund on the ledger, following a partnership announcement earlier in the year.
There is already significant activity on-chain. According to RWA.xyz, XRPL hosts about $1.38 billion in tokenized real-world assets, including $845.7 million in RLUSD. Ondo accounts for $212.6 million, followed by VERT Capital at $116.1 million, Archax at $55.4 million, and Societe Generale at $11.6 million.
Excluding RLUSD, more than $530 million in tokenized assets remain on the network, though they are concentrated among a small number of issuers.
In its initial phase, Confidential Transfers will be limited. Users must opt in, and it currently supports only direct MPT transfers between accounts. It does not yet extend to the built-in exchange, escrow, or check features.
The other five amendments also focus on institutional needs. “Batch” allows up to eight transactions to be grouped together, with an option for all-or-nothing execution. “Sponsor” lets one account cover another’s fees and reserves, removing the need for new users to hold XRP.
“Permission Delegation” enables accounts to grant limited transaction authority to third parties, while “Dynamic MPT” allows issuers to adjust certain token properties after issuance.
Version 3.3.0 also includes performance improvements, reducing memory usage by 10% to 15% and helping nodes sync faster, according to XRPL Operations.
None of the updates are live yet. XRPL amendments require at least 80% support from trusted validators for two continuous weeks before activation.
Confidential Transfers must first clear this threshold. After that, the key question will be whether institutions like Aviva or Ondo choose to adopt privacy features or continue operating with transparent transactions.
