New compliance features, native credit markets, and zero-knowledge proofs position XRPL for institutional finance adoption
Yurchanka Siarhei/Shutterstock and Adobe modified by Blockworks
The XRP Ledger (XRPL) is accelerating its institutional finance strategy, introducing a slate of compliance and credit tools while preparing to launch a native lending protocol later this year.
Ripple confirmed the developments in a roadmap update, published Monday.
Three compliance features — Credentials, Deep Freeze, and Simulate — are now live. Credentials, tied to decentralized identifiers (DIDs), allow issuers to verify user attributes such as KYC or accreditation.
Deep Freeze enables issuers to halt transfers from sanctioned accounts, while Simulate lets developers test transactions without committing them to the ledger. Together, these tools expand XRPL’s compliance toolkit for regulated institutions.
The upcoming lending protocol, defined in the XLS-65 and XLS-66 specifications, will introduce pooled lending and underwritten credit directly at the protocol level. Institutions will be able to source low-cost, compliant loans while smaller investors gain access to yield opportunities.
Looking further ahead, the XRPL community is developing zero-knowledge proofs (ZKPs) to balance privacy and regulatory accountability. Confidential multi-purpose tokens (MPTs), expected in early 2026, will allow collateral management without exposing sensitive transaction data.
The roadmap signals Ripple’s intent to position XRPL as a leading chain for institutional finance, combining compliance, programmability, and privacy. As validator voting continues and Version 3.0 approaches, institutional adoption will hinge on the network’s ability to scale securely while meeting regulatory demands.
This is a developing story.
This article was generated with the assistance of AI and reviewed by editor Jeffrey Albus before publication.
Get the news in your inbox. Explore Blockworks newsletters:
- The Breakdown: Decoding crypto and the markets. Daily.
- 0xResearch: Alpha in your inbox. Think like an analyst.
- Empire: Crypto news and analysis to start your day.
- Forward Guidance: The intersection of crypto, macro and policy.
- The Drop: Apps, games, memes and more.
- Lightspeed: All things Solana.
- Supply Shock: Bitcoin, bitcoin, bitcoin.
Decoding crypto and the markets. Daily, with Byron Gilliam.
Mon – Wed, October 13 – 15, 2025
Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.
Research
EtherFi, the largest liquid restaking protocol, is repositioning itself as a consumer-facing crypto neobank. Beyond staking, it is building a revenue mix around cards, vaults, and trading, aiming to capture sustainable front-end economics in DeFi. The shift highlights EtherFi’s ambition to expand from infrastructure into a full financial platform.
news
Breaking headlines across our core coverage categories.
Advance notice seeks input on consumer protections, illicit finance risks, and market oversight in new stablecoin framework
Consensus clients rely on libp2p and any gaps in maintenance could threaten validator performance
RCMP dismantles TradeOgre after Europol tip, citing FINTRAC violations and suspected laundering
The network upgrade introduces PeerDAS, phased blob expansion, and audits as Ethereum pursues greater scalability and efficiency
New integration makes EigenCloud the verifiable backbone for AI agents settling payments across cards, bank rails, and blockchains
The exchange will offer yields up to 10.8% through onchain lending in the US and abroad
