Ripple has strengthened the DeFi capabilities of the XRP Ledger following the mainnet launch of Token Escrow (XLS-85). The upgrade expands native escrow functionality across multiple token types, marking a major step in XRPL’s push to enhance programmable finance and attract broader institutional and developer adoption.
Token Escrow (XLS-85) Unlocks Advanced DeFi Utility
RippleX, the development team behind XRPL, recently announced the launch of Token Escrow (XLS-85) on the XRPL mainnet in an X post. According to the team, the feature extends native escrow functionality beyond XRP to trustline-based tokens and multipurpose tokens, marking a major step forward in XRPL’s financial programmability.
Before this upgrade, projects seeking to lock stablecoins or tokenized assets on XRPL had to rely on custom-built solutions and bridges. With XLS-85 now live, all supported tokens can be placed into escrow directly without third-party tools. These include stablecoins such as RLUSD, tokenized real-world assets, bonds, and other ledger-supported digital tokens.
Meanwhile, it’s worth noting that the announcement comes amid XRP Community Day. In this event, XRP holders, builders, and Ripple leaders gather to discuss key innovations and the network’s future.
Institutional and Developer Adoption Could Accelerate
RippleX also highlighted potential institutional use cases. According to the team, institutions can leverage XRPL token escrow for treasury management, automated settlements, legal holds, and collateral management, supporting enterprise-grade blockchain financial infrastructure.
Meanwhile, escrow functionality also enables broader DeFi use cases such as conditional payments, decentralized marketplaces, and peer-to-peer token swaps. Additionally, XLS-85 allows projects to implement secure vesting and grants, enabling conditional grant distributions and customizable token-release schedules.
Other potential applications include digital rights management and real-world asset tokenization. Interestingly, the mainnet launch also follows Ripple’s announcement of the RLUSD stablecoin launch on Binance with full XRPL support, signaling efforts to strengthen stablecoin liquidity across the ecosystem
XRP Price Outlook Amid Growing Network Utility
Despite the ecosystem upgrade, XRP has yet to show strong positive price movement. According to CoinMarketCap data, XRP declined 1.9% in the last 24 hours to around $1.37 while maintaining its position as the fourth-largest cryptocurrency by market capitalization.
Meanwhile, in a recent X post, market analyst EGRAG CRYPTO outlined two possible scenarios. In the first, XRP could eventually surge to $11 but may first bottom near $0.60. In the second scenario, XRP could peak near $8.5 after potentially bottoming around $0.90. Regardless, the analyst remains confident that XRP could see significant upside despite current weak market action.
The CoinRemark Team
Evans Kelvin
