XRP Ledger upgrade expands token escrow: Will XRP price benefit?

of $XRP Ledger (XRPL) enabled the XLS-85 fix on February 12, 2026, introducing native escrow for all Trustline-based tokens (IOUs) and multipurpose tokens (MPTs). This upgrade opens new use cases for secure and programmable asset settlement.

Additionally, the move expands the utility of XRPL, with market watchers suggesting this upgrade could pave the way for the deployment of institutional capital. But will this affect $XRPWhat is the price? That is a question that remains unanswered.

XLS-85 modification further expands escrow functionality $XRP

XLS-0085 enhances the escrow mechanism on the network. Previously, XRPL’s native escrow functionality was limited to: $XRP. With the XLS-85, that limitation is removed.

“From stablecoins such as $RLUSD For real-world assets, XRPL now supports secure, conditional on-chain payments for all assets,” RippleX said.

XLS-85 upgrades the existing EscrowCreate, EscrowFinish, and EscrowCancel transaction types. The key is that the token issuer retains control. Tokens must explicitly allow escrow functionality through issuer-level flags. This maintains compliance controls and token governance structures already in place.

This isn’t just a small adjustment. XRPL is more than just a network. $XRP Assets can be escrowed to acquire native time-locking and conditional release capabilities.

That opens the door to what’s next.

• Token vesting schedule
• Institutional payment workflow
• Financial management of issued assets
• Conditional stablecoin payments
• Structured financial products built directly on XRPL

“Token Escrow (XLS-85) is #$XRP Ledger connects directly to Ledger to prepare your DEX for institutions. Institutions will begin deploying CAPITAL on #XRPL starting February 12th,” the analyst wrote.

The latest update comes on the heels of XRPL enabling permitted domains to expand institutional use cases earlier this month.

XRPL’s Token Escrow Upgrade Raises Questions $XRPlong-term price impact of

It is worth noting that activation of XLS-0085 does not directly increase demand. $XRPwhich can influence the long-term price trajectory of an asset through broader network effects.

Rather than expanding the use of escrow, this amendment extends native escrow functionality to Trustline-based tokens and multipurpose tokens. $XRP itself. This means that the upgrade does not automatically create any additional data. $XRP Lock-ups and immediate supply constraints.

However, the structural implications are more subtle. For token issuers such as stablecoin providers, RWA platforms, and institutions adopting XRPL, native token escrow is now supported.

• Token issuance in XRPL may increase
• Trading volume may increase
• Number of active accounts may grow
• demand for $XRP Fees and reserve requirements may increase

This increases network usage and $XRP is still a gasoline and reserve asset on the ledger. Highly practical → Potentially in high demand $XRP →There is a possibility that the price will rise. But this depends entirely on actual recruitment.

Upgrades like XLS-0085 demonstrate that XRPL is positioning itself as a tokenized financial infrastructure. Sentiment could only impact the price if the market perceives that XRPL is becoming more competitive with Ethereum and other token platforms. Crypto markets often price based not only on usage, but also on narrative and positioning.

In the short term, price impacts are likely to depend more on market sentiment than on immediate usage metrics. In the long term, the continued growth of the ecosystem driven by token-enabled escrows could contribute to strengthening the foundations of networks that have historically played a role in the valuation of digital assets.

For now, $XRP continues to face challenges along with the broader market. At the time of writing, the stock was trading at $1.36, down 1.35% from the previous day.

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