The XRP Ledger released version 3.3.0 this week, proposing six amendments aimed at institutional users. Among these, a Confidential Transfers update allows encryption of balances and payment amounts for Multi-Purpose Tokens (MPTs).
This feature targets institutional finance—specifically funds, bonds and other tokenized financial assets. It lets institutions move tokens without publicly revealing the size of every position or transfer.
Accounts and the token type being moved remain visible on the ledger. Individual balances and payment amounts can be encrypted, preserving confidentiality for sensitive financial operations.
The ledger uses a cryptographic method to validate transactions, proving their validity without disclosing the underlying numerical values. That maintains auditability while keeping balances private.
Ripple has actively pushed XRPL into tokenized finance throughout 2026. Aviva Investors launched a tokenized share class of its U.S. Dollar Liquidity Fund on the ledger last month, following an initial announcement with Ripple in February.
Real capital is already sitting on-chain for these features. On-chain data aggregator RWA.xyz tracks approximately $1.38 billion in distributed real-world assets on XRPL.
That total includes $845.7 million in RLUSD. The remaining tokenized assets, exceeding $530 million, are concentrated among a few key issuers.
Ondo accounts for $212.6 million of those assets, followed by VERT Capital with $116.1 million. Archax holds $55.4 million, and Societe Generale maintains $11.6 million.
Confidential Transfers launches with limitations. Holders must opt into the encrypted format, and it currently supports only direct MPT payments between accounts. It does not yet cover trades on XRPL's built-in exchange, escrow or checks.
Five other amendments accompany Confidential Transfers, also targeting institutional needs. The Batch amendment allows packaging up to eight transactions together, including an all-or-nothing mode for dependent steps.
The Sponsor amendment lets one account cover fees and reserve requirements for another. That removes the need for a new user to hold XRP before transacting on the ledger.
Permission Delegation enables an account to authorize a third party for only specified transaction types, offering limited administrative authority without full control. Dynamic MPT gives issuers the ability to change certain token properties after issuance.
Version 3.3.0 also bundles several fixes. XRP Ledger Operations reported the update reduces memory use by at least 10 percent to 15 percent and improves how quickly nodes synchronize with the network.
None of these proposed changes are active yet. XRPL amendments require continuous support from at least 80 percent of trusted validators for two weeks before activation. Whether institutions like Aviva or Ondo adopt these privacy features for their existing tokenized assets is the practical test.
