RippleX Launches Token Escrow on XRPL Mainnet
- Token Escrow (XLS-85) is now live on the XRP Ledger’s mainnet as of Feb. 12.
- The feature extends escrow capabilities to trustline-based tokens (IOUs) and Multi-Purpose Tokens (MPTs).
- Tokenized US Treasuries are valued at approximately $10 billion on public chains, with additional value in private credit and commodities.
- Issuers must enable specific flags for token escrow functionality, impacting adoption rates.
- Each escrow object created requires a reserve of XRP, potentially increasing demand as usage scales.
The introduction of Token Escrow marks a significant step towards integrating conditional settlement features into the XRPL ecosystem, catering to institutional needs for compliance and operational control.
With the potential for increased demand linked to escrow object creation, this feature could reshape how assets settle on the network, especially given the current valuation of tokenized assets like US Treasuries at $10 billion.
