XRP Ledger proposes privacy amendments for $530M in tokenized Wall Street assets with encrypted balances and regulator/auditor access.
Regulation & Gov ·
The XRP Ledger has proposed protocol amendments to support privacy features for approximately $530 million in tokenized Wall Street assets, introducing encrypted balance functionality while maintaining selective visibility for regulators and auditors. The design aims to balance confidentiality with compliance, allowing issuers and designated oversight bodies to retain access to transaction and balance data despite encryption at the ledger level.
The amendments represent a response to institutional demand for privacy in on-chain settlement, a key friction point as traditional finance moves tokenized assets onto blockchain infrastructure. The mechanics preserve issuer control over decryption keys rather than implementing user-controlled encryption, a design choice that reflects the regulatory and operational constraints of institutional asset issuance on public networks.
It remains unclear whether the amendments will be formally adopted, how quickly they could be deployed, or what the actual uptake among issuers and institutions will be. The extent to which this approach will satisfy both privacy and compliance requirements across different jurisdictions has not yet been tested in production.