- The XRP Ledger has introduced the Multi-Purpose Token standard to simplify institutional asset tokenization, eliminating the need for custom smart contracts.
- MPT tokens include built-in compliance features like KYC and AML verification, and issuers can control token transfers and set supply limits.
- DEX and AMM support for MPTs will be added later, and Ripple plans to introduce privacy features and a native lending protocol in future updates.
The XRP Ledger has introduced the Multi-Purpose Token (MPT) standard, marking a significant advancement in blockchain-based asset tokenization. The new protocol integrates directly into XRPL’s core infrastructure, removing the dependency on custom smart contracts. This architectural approach enables institutions to issue tokens with enhanced security and operational efficiency.
Built-In Compliance and Control Features
MPT tokens incorporate native compliance functions designed to meet institutional regulatory requirements. The standard includes integrated Know Your Customer (KYC) and Anti-Money Laundering (AML) verification capabilities at the protocol level.
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
Issuers gain granular control over token distribution and management. Transfer rules can be configured to restrict token holdings exclusively to approved users. Supply caps prevent unauthorized token creation, while on-chain metadata facilitates automated reporting and regulatory transparency. Transfer fees provide issuers with mechanisms to manage transaction costs effectively.
The MPT launch follows the recent Smart Escrow Devnet update released by XRPL developers. That update addressed fee structures, reserve requirements, function signatures, and MPToken issuance processes. Various bug fixes and code optimizations were also implemented.
Current MPT implementation does not yet support decentralized exchange trading functionality. XRP Cafe founder Adam highlighted this limitation in recent discussions. Kenny, responding to the observation, confirmed that Automated Market Maker (AMM) and DEX support for MPTs will be added in subsequent releases.
The biggest hurdle to adoption, not to mention already established token standards that have been tried and true for 10 years. I would have almost rather see trustline tokens extended/amended in functionality instead of a new standard, but hey, lets see how this plays out. pic.twitter.com/9Fyu1Oosho
— xrpl_Adam (@xrpl_adam) October 1, 2025
The development team has adopted an incremental rollout strategy rather than deploying all features simultaneously. This phased approach allows for thorough testing and gradual institutional adoption. The existing MPT features establish a foundation for expanded capabilities in future updates.
Institutional DeFi and Lending Protocol
MPTs are positioned to enable institutional-grade decentralized finance applications. The standard supports pooled lending mechanisms, credit verification systems, and tokenized collateral solutions. XRPL version 3.0.0 will introduce a native lending protocol, allowing regulated loans to be issued directly at the ledger level with reduced operational costs.
Ripple’s strategic roadmap identifies tokenized assets and stablecoins as central components of its institutional framework. The XRP Ledger is designed to facilitate payments, lending, and settlement operations. Privacy features, including zero-knowledge proofs, are planned for integration.
Compliance mechanisms form a core component of the MPT ecosystem. Tools such as Credentials, Deep Freeze, Token Escrow, and permissioned decentralized exchanges are being developed. These instruments enable issuers to manage risk and maintain regulatory compliance without centralizing control.
Stablecoin payment demonstrations have been conducted as proof of concept for settlement capabilities. Ripple plans to expand MPT functionality with Confidential MPTs, which will enable privacy-preserving transfers. The incremental development approach enables institutions to adopt the standard gradually, integrating additional features over time.
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