of $XRP With the introduction of Confidential MPT, Ledger may have begun building the privacy layer that banks need for blockchain adoption.
of $XRP The Ledger Developers Committee is working to introduce the Confidential MPT standard (XLS-0096), which brings transactional privacy to tokens issued on the network. This standard builds on existing XLS-33 MPT Protocolbut includes EC-ElGamal encryption and ZKP to hide individual balances and transfer amounts.
In particular, this standard could be an important step towards attracting banks and financial institutions to become financial institutions. $XRP Ledger addresses the conflict between the radical transparency of blockchain and the privacy demanded by banks.
Important points
- of $XRP The Ledger Development Board is introducing new standards that will allow users to transfer and hold issued tokens and hide individual balances and transaction amounts from the public view.
- The standard could attract banks and financial institutions that have avoided public blockchains. for Radical transparency for everyone look Transactions and balances of other users.
- Issuers will retain full control under the new standard, including the ability to freeze accounts and forcefully withdraw tokens from holders if necessary.
- Confidential MPT Standard come later XRPL Already enabled Allowed domains and allowed DEX last monthcontinues the pattern of building tools that meet traditional financial compliance and privacy demands.
A new standard for sensitive tokens
In particular, the Confidential MPT specification, designated XLS-0096, written XRPL contributor Shawn Xie made a presentation last week titled “Secret Transfer of Multi-Purpose Tokens.”
Standards are important for institutional adoption, as there will always be a conflict between what banks need and what blockchain provides. Specifically, blockchain is built on radical transparency, allowing anyone to see other users’ transactions and balances, something most banks are extremely uncomfortable with.
standard build above It adds encrypted balances and confidential transfers with EC-ElGamal encryption and zero-knowledge proofs (ZKP) to the existing multi-purpose token framework, XLS-33. but keep XLS-33 Accounting Rules and Supply Management.
The motives behind secret lawmakers
XLS-33 already supports flexible tokenization. $XRP ledgerbut All balances and all transfers based on this protocol stay Completely open to the public.
Thank you I felt stressed Having this level of transparency was held back Recruitment in institutional and privacy-sensitive environments. He hopes that Confidential MPT will address this issue by offering encrypted balances and confidential transfers without giving up. XLS-33 system.
In particular, this standard ensures that the overall token supply is visible and auditable even though individual balances remain hidden. Additionally, the MaxAmount (MA) field continues to limit the total supply. give validator what they need enforce the rule that say OutstandingAmount (OA) must be less than or equal to MA.
Four properties of Confidential Token Standard
GitHub data confirms that this design introduces four key properties: Specifically, the first is confidentiality. By default, individual balances and transfer amounts are encrypted, making them invisible to validators and outside observers. XRPL validator Vet noted this in a recent post about X.
Using XLS-96, issued asset balances and transmitted amounts are encrypted. $XRP.
😈 pic.twitter.com/7JNDv4wJIa
— Veterinarian (@Vet_X0) March 9, 2026
Regarding the second characteristic, the standard introduces public auditability. that’s for sure Existing rule for OutstandingAmount is less than or equal to MaxAmount stay Can be executed publicly without anyone who needs it To decipher confidential balances.
The third property is selective disclosure and display keys, which are supported in the standard through two separate models. The first model is an on-chain audit approach with minimal trust. However, the second model is a simpler model in which the publisher controls the view keys and can disclose information on demand.
On the other hand, the design includes compatibility as a fourth characteristic. Here you can: Public and confidential balances: exist next to each other For the same token, the system treats a given issuer’s second account the same as any other non-issuer holder. In particular, this preserves the XLS-33 publication rules.
Issuer control is also transferred to confidential balances, covering freezing and return to issuer reserves. The standard is to keep OutstandingAmount as the sum of all non-issuer balances.
What this means for banks and institutional implementation
$XRP Proponents say the standard: $XRP Leisure is really attractive To financial institutions, especially banks. In particular, most banks want their transactions to be confidential, and the Confidential MPT standard is make this Possible For issued tokens. Please note that this standard does not include: $XRP, Only issued tokens.
Interestingly, the XRPL developer community has focused on this standard since its enablement. allowed domains and last month’s Permissioned DEX, two compliance tools that enable banks and financial institutions to adopt XRPL within an environment that complies with global regulatory requirements.
in press Today, the Confidential MPT standard remains a proposal under active discussion on GitHub. and still advanced As a fix to XRPL validator voting.
