Major XRP Ledger Upgrade Targets Institutional Adoption But There’s a Catch

The update introduces privacy and institutional-focused features designed to make the network more attractive for tokenized financial assets.

XRPL has released version 3.3.0, which takes another step toward becoming infrastructure for institutional tokenization.

It introduces several proposed amendments focused on privacy, payments, and managing real-world assets (RWAs).

Confidential Transfers

Perhaps the most significant new feature is called Confidential Transfer. It’s designed to allow institutions to hide balances and transaction amounts for Multi-Purpose Tokens (MPTs) while keeping the accounts and the asset type involved visible. It uses cryptographic proofs to verify that transactions are valid without publicly revealing the underlying amounts.

According to the GitHub post and previous reports on the matter, this could address an important obstacle for financial institutions, which may want the transparency and settlement benefits of a public blockchain without exposing sensitive position sizes or transaction values.

Data from RWA.xyz shows that roughly $850 million out of the $1.38 billion in RWA distributed on the XRPL is from Ripple’s own stablecoin, RLUSD. This leaves approximately $530 million in other tokenized assets from other big names in the niche, such as Ondo, Archax, Societe Generale, and VERT Capital.