XRP Ledger Upgrade Expands Token Escrow: Will XRP Price Benefit?
Summary
The XRP Ledger (XRPL) successfully activated the XLS-85 amendment on February 12, 2026, which extends native escrow functionality beyond XRP to include all Trustline-based tokens (IOUs) and Multi-Purpose Tokens (MPTs). This upgrade, which modifies EscrowCreate, EscrowFinish, and EscrowCancel transactions, allows for secure, conditional, on-chain settlement for assets like stablecoins and Real World Assets, opening doors for token vesting, institutional settlement, and treasury management.
While the upgrade does not directly increase demand for XRP by locking up more XRP, it is expected to foster broader network effects. Increased adoption by token issuers due to this new functionality could lead to higher transaction volumes, more active accounts, and consequently, increased demand for XRP as the ledger's required gas and reserve asset.
Ultimately, the long-term price impact on XRP depends on sustained ecosystem growth driven by this enhanced utility. If the XRPL is perceived as a more competitive tokenized finance infrastructure, positive market sentiment could also influence its valuation.
(Source:BeInCrypto)