$4.26 billion sitting on one ledger—and banks can finally split the master key into up to 10 🦖
On October 8, the XRP Ledger activated an upgrade called PermissionDelegationV1_1. Account owners can now grant another account permission to perform specific actions without handing over the account’s master key.
🕐 最新解读群里更新
The threshold was support from at least 29 of 35 trusted validators, sustained for two consecutive weeks. The feature’s countdown was reset once in September after support fell below the threshold.
For businesses, this means permissions can be divided by job role. A stablecoin issuer, for example, could let a compliance account approve new customers while keeping the master key offline. Auxiliary accounts signing on its behalf use their own keys and can only perform the specific actions they’ve been granted permission to do. The owner can change or revoke those permissions at any time.
Each auxiliary account can receive up to 10 permissions. These permissions restrict what actions it can perform; they don’t automatically set a spending limit. Banks have long separated payment and compliance duties among employees. This upgrade makes it possible to enforce that separation at the ledger level.
As for the numbers, according to a report from XRP treasury company Evernorth to CoinDesk, the ledger held an average of $3.72 billion in tokenized assets in the second quarter. Add Ripple’s own RLUSD stablecoin, worth $539 million, and the total comes to about $4.26 billion.
But two warning signs are worth noting. The official guide advises against granting the PaymentBurn permission until a new fix is in place. Under certain conditions, it could allow an auxiliary account to create newly issued tokens on the ledger out of thin air, rather than merely burn them. As of Friday, the fix had received just 27 of 35 votes—two short of the number needed to start the two-week countdown.
Separately, developers found a bug in how some servers count these votes. If a validator simply changes its regular security key, a server may drop it from the count. If two validators are missed, the denominator could fall from 35 to 33, making a proposal appear more likely to pass on that server. A related patch is still under review.
My take: splitting a master key into multiple keys with separate functions is a crucial step for institutions willing to put funds on-chain—and a key turning point in the shift from public blockchains as tools for retail users to tools for banks. But it’s easy to overlook that granting permissions isn’t the same as setting limits. Permissions are easy to hand out; when something goes wrong, the ledger won’t go easy on you. XRP is currently trading at around $1.40, nearly flat over 24 hours. The real thing to watch is whether this upgrade brings institutional custody and settlement onto the ledger.
Let’s talk in the comments: Do you think banks will move core settlement onto public blockchains, or will they only dare use them for peripheral operations? 🐋
I bring you the latest XRP stories every day—not just what’s happening, but also the logic and opportunities behind the headlines 👀🚀
On October 8, the XRP Ledger activated an upgrade called PermissionDelegationV1_1. Account owners can now grant another account permission to perform specific actions without handing over the account’s master key.
🕐 最新解读群里更新
The threshold was support from at least 29 of 35 trusted validators, sustained for two consecutive weeks. The feature’s countdown was reset once in September after support fell below the threshold.
For businesses, this means permissions can be divided by job role. A stablecoin issuer, for example, could let a compliance account approve new customers while keeping the master key offline. Auxiliary accounts signing on its behalf use their own keys and can only perform the specific actions they’ve been granted permission to do. The owner can change or revoke those permissions at any time.
Each auxiliary account can receive up to 10 permissions. These permissions restrict what actions it can perform; they don’t automatically set a spending limit. Banks have long separated payment and compliance duties among employees. This upgrade makes it possible to enforce that separation at the ledger level.
As for the numbers, according to a report from XRP treasury company Evernorth to CoinDesk, the ledger held an average of $3.72 billion in tokenized assets in the second quarter. Add Ripple’s own RLUSD stablecoin, worth $539 million, and the total comes to about $4.26 billion.
But two warning signs are worth noting. The official guide advises against granting the PaymentBurn permission until a new fix is in place. Under certain conditions, it could allow an auxiliary account to create newly issued tokens on the ledger out of thin air, rather than merely burn them. As of Friday, the fix had received just 27 of 35 votes—two short of the number needed to start the two-week countdown.
Separately, developers found a bug in how some servers count these votes. If a validator simply changes its regular security key, a server may drop it from the count. If two validators are missed, the denominator could fall from 35 to 33, making a proposal appear more likely to pass on that server. A related patch is still under review.
My take: splitting a master key into multiple keys with separate functions is a crucial step for institutions willing to put funds on-chain—and a key turning point in the shift from public blockchains as tools for retail users to tools for banks. But it’s easy to overlook that granting permissions isn’t the same as setting limits. Permissions are easy to hand out; when something goes wrong, the ledger won’t go easy on you. XRP is currently trading at around $1.40, nearly flat over 24 hours. The real thing to watch is whether this upgrade brings institutional custody and settlement onto the ledger.
Let’s talk in the comments: Do you think banks will move core settlement onto public blockchains, or will they only dare use them for peripheral operations? 🐋
I bring you the latest XRP stories every day—not just what’s happening, but also the logic and opportunities behind the headlines 👀🚀