XRP Ledger Seeks Validator Approval for Institutional ‘Confidential Transfers’ Feature

XRP Ledger has put to a validator vote a new feature that would encrypt balances and transaction amounts for institutional investors.

Ripple released XRPL version 3.3.0 this week, CoinDesk reported on August 7. The update includes six amendments, with confidential transfers as the key feature.

Confidential transfers encrypt balances and payment amounts when assets issued in Multi-Purpose Token, or MPT, format are moved. Account information and token types would remain public, but individual balances and transfer amounts would be concealed from outside parties. That would allow institutions issuing financial assets such as funds and bonds in MPT form to move assets without disclosing the size of their positions.

The feature applies only to direct MPT payments between accounts. It is not yet supported on XRPL’s built-in exchange, escrow or check functions. Use is optional, and holders must choose the encrypted format themselves.

For the amendment to take effect, more than 80% of trusted validators must support it for two consecutive weeks. The confidential transfers amendment is now going through that voting process.