XRP Ledger Proposes Confidential Transfers to Target Institutional Tokenized Assets

A new privacy feature is heading to a vote on the XRP Ledger, aimed at institutions managing more than $530 million in tokenized real-world assets currently sitting on the network.

What Confidential Transfers Would Do

XRPL version 3.3.0, released this week, includes six proposed amendments, with “Confidential Transfers” specifically targeting institutional users by encrypting balances and payment amounts on Multi-Purpose Tokens, the format Ripple has promoted for funds, bonds, and other financial products. Accounts and token types remain visible, but individual balances and transfer amounts can be hidden using cryptographic methods that verify transaction validity without revealing actual figures.

Growing Institutional Presence on XRPL

Ripple has spent much of 2026 expanding XRPL’s role in tokenized finance, including Aviva Investors launching a tokenized share class on the ledger last month. RWA.xyz data shows roughly $1.38 billion in tokenized real-world assets on XRPL, including $845.7 million in RLUSD, with Ondo, VERT Capital, Archax, and Societe Generale also holding notable positions, leaving over $530 million outside RLUSD specifically.

Limited Initial Scope, Additional Upgrades Included

Confidential Transfers currently only applies to direct MPT payments between accounts, requiring opt-in participation, and doesn’t yet cover trades, escrow, or checks. The release also includes features like transaction batching, fee sponsorship for new users, permission delegation for limited account authority, and dynamic token property changes. All amendments require 80% validator support sustained for two weeks before activation.