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

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5 hours ago
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XRP Ledger launches MPT standard.

Highlights

  • XRPL launches MPT standard to simplify tokenization and ensure regulatory compliance.
  • MPT supports institutional DeFi use cases including lending, collateral, and tokenized assets.
  • Future Confidential MPTs enable privacy-preserving transfers while maintaining compliance.

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.

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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.

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.

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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.

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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
At CoinGape, the team of crypto journalists, writers, and editors delivers neutral, insightful, accurate, and timely coverage of the blockchain industry. We uphold the highest standards of journalistic ethics, transparency, and fact-checking. Our goal is to keep readers informed through accurate and reliable reporting. This article includes contributions from CoinGape writers and reporters.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.