XRPL Unveils Confidential MPT Standard for Banks as Goldman Sachs Boosts XRP ETF Holdings to $154M

XRP Ledger Advances Privacy with Confidential MPT Standard as Institutions Build $210M+ ETF Exposure

The XRP Ledger is taking a significant step toward institutional adoption with the introduction of the Confidential MPT standard (XLS-0096), which would enable privacy for issued tokens while preserving core compliance features. At the same time, new regulatory filings reveal that major Wall Street institutions have begun accumulating exposure to XRP through spot ETFs, with disclosed holdings exceeding $210 million across more than 30 firms.

This convergence of on-chain privacy enhancements and growing institutional interest highlights the XRP ecosystem’s continued evolution toward regulated, enterprise-ready infrastructure.

Institutional ETF Holdings Signal Growing Comfort

SEC 13F filings compiled by Bloomberg Intelligence show at least 30 institutional firms now hold positions in XRP ETFs, totaling more than $210 million in exposure. Leading the group is Goldman Sachs, with over $153.81 million in XRP ETF shares — equivalent to roughly 83.63 million XRP tokens — making it the largest disclosed institutional holder.

Other notable participants include:

• Millennium Management with $23.07 million (about 12.54 million XRP).
• Logan Stone Capital with $5.29 million.
• Citadel Advisors with approximately $4.52 million.
• Additional allocations from firms such as Jain Global, Marex Group, Gallacher Capital Management, DRW Securities, Jane Street, and Flow Traders.

While these positions represent a relatively small share of total ETF assets (currently around $967 million across the five U.S. spot XRP ETFs), they mark an important shift. Cumulative inflows into XRP ETFs have reached approximately $1.21 billion since launch in November 2025, even as the token has faced price pressure.

Recent flows have been mixed, with about $6.08 million exiting the funds on March 11 (primarily from 21Shares and Franklin Templeton products). However, the overall trend shows sustained interest from both retail and institutional channels.

Confidential MPT Standard Brings Privacy to Issued Tokens

Parallel to institutional ETF activity, the XRP Ledger developer committee is advancing the Confidential MPT specification (XLS-0096), authored by contributor Shawn Xie. The standard builds on the existing XLS-33 Multi-Purpose Token framework and adds encrypted balances and confidential transfers using EC-ElGamal encryption and zero-knowledge proofs (ZKPs).

Key properties of the new standard:

• Confidentiality: Individual balances and transfer amounts remain hidden from public view.
• Public auditability: Overall token supply and compliance rules (OutstandingAmount ≤ MaxAmount) stay verifiable without decrypting private data.
• Selective disclosure: Issuers or auditors can use view keys to reveal information when needed.
• Compatibility: Public and confidential balances can coexist for the same token, with issuer controls (freezing and clawback) fully preserved.

The standard does not apply to native XRP but targets issued tokens — making it particularly relevant for banks and financial institutions exploring tokenized assets on the XRP Ledger. It follows recent introductions of Permissioned Domains and Permissioned DEX functionality, continuing a pattern of building compliance and privacy tools tailored for traditional finance.

Implications for Banks and Institutional Adoption

Banks have historically avoided public blockchains due to radical transparency that exposes transaction details and balances. The Confidential MPT standard directly addresses this concern by enabling privacy for issued tokens while maintaining issuer control and public auditability of supply.

This development, combined with growing ETF exposure from firms like Goldman Sachs and Millennium Management, suggests the XRP Ledger is positioning itself to meet institutional requirements for both privacy and regulatory compliance. As tokenized real-world assets and enterprise payment solutions gain traction, these enhancements could accelerate adoption in privacy-sensitive sectors.

Outlook: Divergence Between Corporate Progress and Token Price

Ripple’s corporate initiatives — including payment infrastructure growth and now privacy-focused ledger upgrades — continue to advance. However, XRP’s price remains in consolidation mode near $1.38, reflecting broader market sentiment and technical weakness.

The combination of institutional ETF accumulation and on-chain privacy improvements creates a structural foundation for potential long-term growth. Whether this translates into price appreciation will depend on broader market recovery, regulatory clarity (such as Clarity Act progress), and sustained demand for XRP’s utility in cross-border payments and tokenization.

For now, the XRP Ledger is quietly building the tools institutions have long requested — privacy for issued tokens, regulated exposure via ETFs, and compliance-ready infrastructure — while the token navigates its own market cycle. The divergence between corporate progress and spot price performance remains a key theme to monitor in the months ahead.

Robert Petrov publication: "XRPL Unveils Confidential MPT Standard for Banks as Goldman Sachs Boosts XRP ETF Holdings to $154M" was written for 24crypto.news

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