XRPL to Integrate Privacy Features on Network

XRP Ledger developers advanced a privacy proposal designed for tokenized assets and institutional use. The XLS-96 amendment would introduce confidential transfers for Multi-Purpose Tokens on the public blockchain.

The feature would conceal individual balances and transfer amounts while allowing authorized parties to verify supply and compliance information. However, the proposal still requires sufficient validator support before mainnet activation.

XRPL Confidential Transfers Target Institutional Tokenization

According to the draft document on the feature, the Confidential MTP  on XRPL is an extension of the XLS-33 (Multiple-Purpose Token) token standard introduced in October 2025.

MPTs are designed to be more efficient and enable issuance of real-world assets (RWA) on XRPL. By introducing the privacy features, the developers believe institutions can use the network tokenization capability enabled by the XLS-33.

It noted that the current tokenization feature provides transparency, meaning all balances and transfers are visible to the public. “This transparency limits adoption in institutional and privacy-sensitive contexts,” it added.

Interestingly, the Confidential Transfer feature also supports compliance, enabling users to disclose such information through various mechanisms.

This essentially means users can hide balances and transfers from the public while still disclosing them to auditors and authorities. It also provides issuers with greater control, allowing them to freeze or claw back transactions.

XRP Struggles Amidst Decline in XRPL Activity

Meanwhile, the introduction of privacy features is only the latest in a series of developments on the XRPL network. Ripple had recently disclosed plans to introduce a lending protocol at the mainnet level.

The network was used in the tokenized asset redemption pilot by Ripple, Ondo Finance, and JPMorgan. It has also seen growth in RWA activity, showing that its institutional push is paying off.

Despite the developments, the network has struggled with activity in recent weeks. The number of active daily wallets fell to the second lowest this year, while new wallet creation has also dropped to around 2,000.  This is its lowest since November 2024.

With activity down, XRP has also been struggling. The token is trading at $1.11 after falling 4% in the past seven days. The token is down 40% this year, with analysts noting that traders might be patiently waiting for a turnaround.