XRP Ledger’s XLS-33 MPToken V1 Could Simplify Asset Tokenization With Multi-Purpose Tokens and Built-In Compliance

• XLS-33 MPToken V1 embeds Multi-Purpose Tokens into the XRP Ledger protocol for native tokenization.

• MPTs remove much of the need for bespoke smart contracts by providing ledger-level compliance and control features.

• MPTs enable institutional DeFi use cases — fractionalized assets, tokenized funds, and privacy-preserving transfers — after a 14-day activation period.

MPToken (XLS-33 MPToken V1) on XRP Ledger streamlines asset tokenization and compliance — read how institutions can use MPTs today.

The XRP Ledger’s new XLS-33 MPToken V1 activation brings Multi-Purpose Tokens to simplify asset tokenization with built-in compliance and control features.

• XRP Ledger’s XLS-33 MPToken V1 activation introduces a new token standard focused on simplifying asset tokenization and compliance.
• Multi-Purpose Tokens reduce the need for custom smart contracts, enabling secure and efficient asset tokenization with built-in features.
• The MPT standard supports a range of institutional DeFi use cases, including fractionalized assets and privacy-preserving transfers.

The XRP Ledger has officially activated the XLS-33 MPToken V1 amendment after a 14-day activation window. This activation delivers Multi-Purpose Tokens (MPTs), a ledger-native token model designed to make issuance and lifecycle management of tokenized assets simpler and more secure for institutions. The new standard embeds compliance, transfer controls, and metadata into the ledger itself.

What is XLS-33 MPToken V1?

XLS-33 MPToken V1 is an XRP Ledger protocol amendment that creates Multi-Purpose Tokens (MPTs) as a first-class ledger feature. MPTs allow issuers to attach compliance rules, metadata, and transfer controls to tokens without deploying custom smart contracts, improving security and operational efficiency.

How do Multi-Purpose Tokens change asset tokenization?

MPTs shift common token functions to the ledger layer, so financial institutions no longer need to rely on bespoke contract code for basic compliance. The activation followed a 14-day network signaling period and is intended to reduce audit complexity and operational risk. Built-in features include issuer-controlled transfer restrictions, standardized metadata, and optional privacy-preserving transfer modes.

MPTs are particularly suited to use cases such as fractionalized real-world assets, tokenized money market funds, closed-loop loyalty tokens, and vault share issuance for lending protocols. By standardizing key features at the ledger level, MPTs enable secondary market activity and introduce pathways for confidential transfers that preserve privacy while maintaining compliance controls.

Why are MPTs important for institutional DeFi?

MPTs provide the building blocks institutions require to adopt DeFi primitives with predictable governance and compliance. With transfer rules and metadata embedded into the ledger, issuers can create financial products — for example, tokenized funds or vault shares — with lower operational overhead and reduced counterparty risk. This ledger-native approach advances the XRP Ledger’s position as a platform for regulated tokenization and institutional finance.

Frequently Asked Questions

How quickly did XLS-33 activate on the network?

The XLS-33 MPToken V1 amendment activated after a standard 14-day consensus activation period on the XRP Ledger, following node signaling and network readiness checks.

Can MPTs replace custom smart contracts entirely?

MPTs remove the need for custom smart contracts for common token controls and compliance, but specialized on-chain logic beyond ledger-level features may still require additional smart contract layers or off-ledger processes.

Key Takeaways

• Native tokenization: MPTs embed compliance and control into the XRP Ledger, simplifying issuance workflows.
• Institutional use cases: Supports fractionalized assets, tokenized funds, vault shares, and privacy-preserving transfers.
• Operational benefits: Reduces audit and contract complexity, enabling faster, more secure token launches.

Conclusion

The XLS-33 MPToken V1 activation marks a meaningful step for the XRP Ledger toward standardized, ledger-native asset tokenization. By providing Multi-Purpose Tokens with built-in compliance and metadata, the ledger lowers technical barriers for institutions and accelerates practical DeFi adoption. Expect issuers to pilot fractionalized assets and regulated token products in the coming months as MPT tooling matures.