A proposed update to the XRP Ledger (XRPL) could allow institutions to keep token balances and transaction amounts private, while still granting selective visibility to issuers, auditors, and regulators.
The privacy-focused feature is now up for a vote on XRPL, where more than $530 million worth of tokenized real-world assets are already recorded.
XRPL’s newly released version 3.3.0 introduces six proposed amendments. The most notable among them, “Confidential Transfers,” is designed with institutional use in mind. It allows balances and payment amounts tied to Multi-Purpose Tokens (MPTs) — a format Ripple promotes for assets like funds and bonds — to be encrypted.
This would enable institutions to transfer tokens without revealing the size of their holdings or the value of transactions. While wallet addresses and token types remain visible on the ledger, the actual figures can be hidden.
Despite this added privacy, the system can still validate transactions using cryptographic proofs, ensuring accuracy without exposing sensitive financial data.
Ripple has spent much of 2026 expanding XRPL’s role in tokenized finance. Last month, Aviva Investors introduced a tokenized share class of its U.S. Dollar Liquidity Fund on the network, following an earlier collaboration announcement with Ripple.
On-chain activity already provides a base for such features. Data from RWA.xyz shows around $1.38 billion in tokenized real-world assets on XRPL, including $845.7 million in RLUSD. Ondo holds $212.6 million, VERT Capital $116.1 million, Archax $55.4 million, and Societe Generale $11.6 million.
Excluding RLUSD, that leaves over $530 million in other tokenized assets on the ledger, though the market remains concentrated among a limited number of issuers.
In its first phase, Confidential Transfers will be somewhat limited. Participation is optional, and the feature currently supports only direct MPT transfers between accounts. It does not yet apply to XRPL’s decentralized exchange, escrow services, or checks.
The remaining five amendments also cater to institutional needs. “Batch” allows up to eight transactions to be grouped together, including an all-or-nothing execution option. “Sponsor” lets one account handle transaction fees and reserve requirements for another, removing the need for new users to hold XRP upfront.
“Permission Delegation” enables accounts to grant restricted transaction authority to third parties, while “Dynamic MPT” allows issuers to modify certain token characteristics after they have been created.
Version 3.3.0 also includes technical improvements and bug fixes. According to XRPL Operations, it reduces memory usage by 10% to 15% and improves how quickly nodes synchronize with the network.
None of these amendments are active yet. To go live, XRPL changes must receive at least 80% approval from trusted validators for a continuous two-week period.
Confidential Transfers must first meet that threshold. Afterward, the real test will be whether institutions such as Aviva or Ondo choose to adopt the privacy feature or continue operating with full transparency.
