New Token Escrow Feature on XRPL May Drive Demand for XRP

RippleX's Token Escrow on XRPL is now operational, potentially boosting XRP demand if adoption challenges are overcome.

On February 12, RippleX, the development division of Ripple, revealed that the Token Escrow feature is officially operational on the mainnet of the XRP Ledger (XRPL). This innovation, known as Token Escrow (XLS-85), introduces the capability for conditional locking and releasing, specifically targeting trustline-based tokens (IOUs) and Multi-Purpose Tokens (MPTs).

With this enhancement, the XRPL's escrow functionalities are extended beyond just XRP, now accommodating issued assets that are commonly utilized for stablecoins among other applications. The introduction of Token Escrow could lead to an increased demand for XRP, provided that the existing barriers to adoption can be successfully navigated.