XRP Ledger 3.3.0 adds zero-knowledge privacy for tokenized assets

XRP Ledger released version 3.3.0 with six amendments, including zero-knowledge privacy for Multi-Purpose Token transfers via EC-ElGamal encryption.

"The combination of privacy-preserving transfers, batching, sponsorship, and flexible token controls aims to lower barriers for regulated entities seeking the settlement speed and transparency of a public blockchain while protecting sensitive position data," the XRP Ledger development team said in the 3.3.0 release notes.

Ripple voted in favor of the fixCleanup3_3_0 amendment package, pushing it into active validator evaluation. XRPL Commons reported all 257 Devnet tests passed across 10 categories for the Single Asset Vault proposal. The ConfidentialTransfer amendment (XLS-0096) encrypts individual MPT balances and transfer amounts while keeping accounts and token types visible on the public ledger. Validators can confirm transaction validity and supply invariants without seeing underlying amounts. Public and confidential balances can coexist, and holders may convert between the two forms. The release also includes BatchV1_1 for up to eight atomic inner transactions, Sponsor for third-party fee coverage, PermissionDelegation for granular authority, and DynamicMPT for flexible token properties. Node memory usage drops 10-15 percent in typical configurations.

The amendments require 80 percent support from trusted validators for two consecutive weeks before activation on mainnet. The fixCleanup package has 8 of 29 validator votes so far. Independent trackers report more than $1.38 billion in distributed real-world assets on the network, with over $530 million outside Ripple's RLUSD stablecoin.

Privacy Without Invisible Supply

The proposal is not designed to turn XRPL into a fully private blockchain. It separates transaction-level privacy from system-level auditability. While individual confidential balances are encrypted, validators can continue enforcing limits on how many tokens an issuer has created. XLS-96 introduces accounting mechanisms that preserve the relationship between outstanding supply and an issuer's maximum permitted supply without requiring validators to decrypt individual positions.

Selective disclosure is built in. One model encrypts information under an auditor's public key, while another allows issuers to provide read-only access through view keys. The specification also preserves issuer controls, including freezing and clawback for confidential assets.

The current proposal applies to MPTs, not native XRP transfers. Extending similar confidentiality to XRP would require separate protocol-level changes because native XRP and MPTs use different ledger structures and accounting rules.

Institutional Stack Takes Shape

Confidential transfers fit into a broader XRPL effort to build financial infrastructure around tokenized real-world assets. Multi-Purpose Tokens already allow issuers to embed supply limits, metadata, transfer restrictions, and compliance controls at the protocol level. XRPL documentation lists Treasury bills among potential MPT use cases.

Ripple also voted to support XLS-65 and XLS-66, which would bring native single-asset vaults and fixed-term lending to the ledger. XLS-65 would allow users to pool XRP and other XRPL-issued assets in onchain vaults, with depositors receiving tokenized shares as Multi-Purpose Tokens. XLS-66 would enable fixed-term lending without external smart contracts or bridges. XRPL Commons reported all 257 tests passed across 10 categories on Devnet, including authorization controls, exchange formulas, immutable fields, and frozen-asset protections.

Once the voting period concludes, the practical adoption of Confidential Transfers by existing issuers will provide the clearest test of the new capabilities.

This article is for informational purposes only and does not constitute investment advice.