XRP Ledger Rolls Out MPT Standard for Real-World Asset Tokenization

The XRP Ledger (XRPL) has launched the Multi-Purpose Token (MPT) standard, designed to simplify and secure the tokenization of real-world assets (RWAs). MPT integrates directly into the XRPL protocol, eliminating the need for custom smart contracts. This enables institutions to issue tokens efficiently while addressing regulatory and operational requirements.

XRP Ledger Introduces Multi-Purpose Token Standard

According to an X post from Kenny, he noted that MPT tokens offer built-in compliance functions, including Know Your Customer (KYC) and Anti-Money Laundering (AML) verification.

Additionally, issuers can define transfer rules, restrict token holding to approved users, and enforce supply caps. On-chain metadata allows automated reporting and enhances transparency, while transfer fees can be applied to manage transaction costs.

1/ The Multi-Purpose Token (MPT) standard is now live on the XRP Ledger mainnet.

It’s a new native token standard designed to make issuing real-world assets onchain far simpler, safer, and more aligned with how financial institutions operate. pic.twitter.com/1ymso65aJv

— Kenny (@kennyzlei) October 1, 2025

This XRP Ledger upgrade follows the successful Smart Escrow Devnet update release by developers last week. Changes related to fees and reserves, function signatures, multi-purpose token (MPToken) issuance, along with bug fixes and code cleanup.

Meanwhile, XRP Cafe founder Adam pointed out that MPT trading wasn’t available on DEX. Kenny responded, stating that AMM and DEX support for MPTs is coming soon, and that the team is building incrementally rather than introducing a single major change, with the current MPT features providing a solid foundation for future development.

AMM/DEX support for MPTs is coming soon! We are looking to build incrementally instead of introducing one big change. The current MPT feature sets a strong foundation to build upon

— Kenny (@kennyzlei) October 1, 2025

Institutional DeFi, Real-World Assets, and Compliance Innovations

MPTs are set to support institutional decentralized finance (DeFi) applications. Additionally, MPTs enable pooled lending, credit verification, and tokenized collateral. The upcoming XRPL version 3.0.0 is set to introduce a native lending protocol, enabling regulated, low-cost loans to be directly issued at the ledger level.

Ripple’s roadmap identified tokenized assets and stablecoins as key components of its institutional strategy. According to the plan, the XRP Ledger is intended to facilitate payments, lending, and settlement. It is also designed to integrate privacy features such as zero-knowledge proofs.

Moreover, compliance mechanisms, including Credentials, Deep Freeze, Token Escrow, and permissioned decentralized exchanges, were outlined. These tools are intended to help issuers manage risk. They were also designed to help maintain regulatory adherence without centralizing authority. Demonstrations of stablecoin payments were reported as evidence of progress in advancing settlement capabilities.

Ripple plans to expand MPT functionality with features such as Confidential MPTs, enabling privacy-preserving transfers. Incremental updates allow institutions to adopt the standard gradually, building upon the current foundation. They also introduce AMM and DEX support over time.