XRP Ledger Activates XLS85 Upgrade, Bringing Native Escrow to All Issued Tokens

XRP Ledger activated the XLS85 amendment on Feb. 12, 2026, adding native escrow functionality for all Trustline-based tokens and Multi-Purpose Tokens, XRPScan and RippleX said. The upgrade extends XRPL's escrow features, previously limited to XRP, to issued assets such as stablecoins and other IOUs, while requiring token issuers to explicitly enable escrow through issuer-level flags to maintain compliance and governance frameworks. RippleX said the change enhances EscrowCreate, EscrowFinish, and EscrowCancel transaction types and allows tokenized real-world assets to use on-chain, time-locked and conditional settlement for use cases like vesting, structured payouts, and institutional workflows. While XLS85 does not directly increase XRP lockups or immediate demand, broader adoption by stablecoin issuers, tokenization platforms, and institutions could raise XRPL activity over time, which in turn would lift demand for XRP as the network's native fee and reserve asset, the analysis states.