XRP Ledger Seeks Validator Approval for Confidential Transfers Targeting Institutions
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XRP Ledger has put a feature that encrypts balances and transaction amounts to a validator vote as part of a new software version aimed at institutional investors.
CoinDesk reported on August 7 that Ripple released XRPL version 3.3.0 this week. The release includes six amendments, with confidential transfers as the main feature.
Confidential transfers encrypt balances and payment amounts when assets in multipurpose token, or MPT, format are moved. Account information and token types remain visible, but individual balances and transfer amounts are concealed from outside parties. That would let institutions issuing financial assets such as funds and bonds in MPT format move assets without disclosing the size of their positions.
The feature applies only to direct MPT payments between accounts. It is not yet supported on XRPL's built-in exchange, escrow or check functions. Use of the feature is optional, and holders must choose the encrypted format themselves.
To take effect, the amendment must win support from more than 80% of trusted validators for two consecutive weeks. The confidential transfers feature is now going through that voting process.
