XRP Ledger lets institutions share account duties without sharing their keys

Institutions utilizing the XRP Ledger (XRPL) can now delegate specific account responsibilities while keeping their primary signing keys completely secure.

Activated on October 8 at ledger 107,524,865, the PermissionDelegationV1_1 amendment enables account holders to assign targeted transaction permissions to alternative accounts.

This update mirrors traditional financial hierarchies, allowing compliance officers, treasury departments, and asset managers to function under distinct authority tiers.

For instance, a stablecoin issuer can empower its compliance team to approve counterparties while a separate account handles payment execution. Owners can seamlessly adjust or withdraw these delegated permissions during everyday operations without ever exposing their main signing keys.

Vet, an XRP Ledger Foundation contributor, noted that the upgrade allows asset issuers and treasuries to handle account duties in a manner reminiscent of traditional finance while safeguarding their core keys.

However, the current framework lacks support for custom spending limits or asset-specific delegation restrictions. Furthermore, XRPL developers caution against utilizing PaymentBurn until fixCleanup3_4_0 goes live, as an existing vulnerability could permit authorized accounts to mint issued tokens under specific conditions.

XRPL’s tokenized asset market expands

These new governance controls arrive as the XRPL real-world asset (RWA) market experiences notable growth.

A snapshot published on October 7 by the RWA Foundation places XRPL’s year-to-date expansion in tokenized asset value—excluding stablecoins—at roughly $3.7 billion. This performance puts it ahead of BNB Chain at $3.5 billion, Stellar at $2.8 billion, and Solana at $2.2 billion.

Together, these four networks account for approximately $12.2 billion of the $14.9 billion tracked across the 10 blockchains featured in the chart, underscoring fierce competition within the tokenization space.

These metrics track overall shifts in tokenized asset value, encompassing new issuances, redemptions, and shifting valuations.

Meanwhile, RWA.xyz’s network table from October 9 reports roughly $4.54 billion in represented real-world assets on the XRPL and $499 million in distributed assets, excluding stablecoins. This places XRPL 10th in terms of distributed asset value.

According to RWA.xyz definitions, represented assets utilize blockchain record-keeping while remaining on the issuer’s native platform. Conversely, distributed assets can move between external holders outside that environment, which includes permissioned transfers.

Back in July, Aviva Investors rolled out a tokenized share class of its US Dollar Liquidity Fund on the XRPL following clearance from the Central Bank of Ireland.

Qualified investors can gain access to the fund via these tokenized holdings, which maintain the traditional fund’s core investment objectives, liquidity profile, and regulatory safeguards.

The launch was executed alongside institutional custodian Komainu and tokenization infrastructure provider Licuido, with BNY Mellon acting as the custodian for the fund’s underlying assets.

Following this, Ripple revealed strategic investments in both Licuido and transfer-agency technology developer ZILO, expanding its footprint in digital asset issuance, fund administration, and collateral management.

RippleX lays groundwork for round-the-clock collateral transfers

The next phase of institutional infrastructure development on the XRPL centers on leveraging tokenized assets as collateral outside standard banking hours.

In an October 8 technical publication, RippleX outlined five core capabilities: Permission Delegation, Atomic Batch, Confidential Transfers, Dynamic Multi-Purpose Tokens, and Sponsored Fees.

To demonstrate the concept, RippleX presented a scenario where a bank borrows stablecoins against $50 million in tokenized money market funds on a Sunday evening.

Under this model, the bank could pledge fund shares as collateral in exchange for stablecoins, executing the collateral pledge and the payment settlement simultaneously. Ripple has additionally positioned its RLUSD stablecoin to serve as the cash leg for delivery-versus-payment settlements.

The Atomic Batch feature is already operational, with BatchV1_1 going live on October 9 at ledger 107,540,993. Its all-or-nothing function ensures that linked transfers either succeed together or completely revert.

Looking ahead, Confidential Transfers aims to mask Multi-Purpose Token transfer values while granting approved participants—such as regulators and auditors—visibility into the data.

Dynamic Multi-Purpose Tokens would allow issuers to modify designated token attributes as underlying financial instruments evolve. Meanwhile, Sponsored Fees are designed to let third parties shoulder transaction costs and reserve requirements for institutions that cannot hold XRP directly.

According to RippleX, this suite of tools could successfully transition tokenized assets into mainstream secured financing and liquidity management.

While Permission Delegation and Atomic Batch are currently active, Confidential Transfers, Dynamic MPT, and Sponsored Fees continue to await validator approval. These remaining updates will ultimately deliver the privacy, token modification, and fee-sponsorship elements outlined in the RippleX roadmap.

?Frequently Asked Questions

01What is the PermissionDelegationV1_1 amendment on XRPL?

It is an upgrade that went live on October 8, allowing account owners to assign specific transaction permissions to other accounts without ever exposing their primary signing keys.

02Can users set custom spending limits with the new permission delegation?

No, the current framework does not support custom spending limits or asset-specific delegation restrictions.

03What is Atomic Batch on the XRP Ledger?

Atomic Batch (BatchV1_1) is a live feature that uses an all-or-nothing transaction mode, ensuring linked transfers either succeed together or revert entirely.

04What features are still awaiting validator approval?

Confidential Transfers, Dynamic Multi-Purpose Tokens (MPT), and Sponsored Fees still require approval from network validators.