XRP Ledger 3.3.0 proposes confidential transfers for $530 million in tokenised assets

XRP Ledger version 3.3.0, released this week, introduces six proposed amendments aimed at institutional users, the most consequential being a Confidential Transfers feature for Multi-Purpose Tokens (MPTs). Under the proposal, institutions could encrypt individual balances and payment amounts while leaving account identities and token types visible. Cryptographic verification would allow the ledger to confirm that transactions balance without exposing the underlying figures, and holders would have to opt into the encrypted format.

The proposal lands on a ledger that already hosts roughly $1.38 billion in tokenised real-world assets. RLUSD accounts for $845.7 million of that figure, with Ondo at $212.6 million, VERT Capital at $116.1 million, Archax at $55.4 million, and Societe Generale at $11.6 million. The more than $530 million sitting outside RLUSD represents the addressable base for a feature that institutional issuers have arguably been waiting for before committing larger positions.

The other five amendments in the release target the same audience. Batch lets up to eight transactions be grouped with an all-or-nothing execution option, Sponsor allows one account to cover another’s fees and reserve requirements, Permission Delegation lets issuers grant a third party limited transactional authority, and Dynamic MPT enables post-issuance changes to token properties. Version 3.3.0 also claims a 10 to 15 percent reduction in node memory use.

None of these amendments are active yet. Each requires 80 percent support from trusted validators held continuously for two weeks before activation. Confidential Transfers in its first version is also narrowly scoped, covering direct MPT payments between accounts but not trades on XRPL’s built-in exchange, escrow, or checks. Whether issuers such as Aviva Investors, which launched a tokenised share class of its U.S. Dollar Liquidity Fund on the ledger last month, or Ondo actually elect to use the encrypted format once available is the practical question that follows the governance vote.