XRP Ledger to Get New Privacy Features as Ripple Researchers Unveil Confidential MPTs

Cover image via U.Today Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available. Ripple Labs’ research has introduced a new privacy feature for XRP Ledger (XRPL) to hide transaction amounts and balances while maintaining transparency on the chain. As highlighted by a community account, BankXRP, the new feature, "Confidential Multi-Purpose Tokens (CMPTs)," uses EC-ElGamal encryption and zero-knowledge proofs. Advertisement Institutional use cases drive XRP Ledger privacy push Notably, before this privacy boost, account balances on XRP Ledger were public, and transaction amounts could be easily accessed by anyone. However, with this upgrade, the user can hide account balances and transfer amounts. This is a huge leap into offering users privacy features on the XRP Ledger. It is worth mentioning that the total supply of the tokens will remain public despite the account and transaction amounts being hidden. The idea is to show that no extra tokens are secretly created and maintain transparency on the chain. Big upgrade for privacy on XRPL! Ripple Research introduces Confidential MPTs confidential balances & hidden transfer amounts for Multi-Purpose Tokens using EC-ElGamal + zero-knowledge proofs, while keeping total supply publicly verifiable. Full compatibility with XLS-33, issuer… pic.twitter.com/TAi3IdQqJD — 𝗕𝗮𝗻𝗸XRP (@BankXRP) March 30, 2026 Other information that the public can still access includes the sender and receiver’s addresses, as well as the total token supply. This way, the XRPL’s account-based system is intact, and network integrity is not compromised. For clarity, the new upgrade utilizes EC-ElGamal encryption, which helps to keep the token balance hidden. The zero-knowledge proof allows the platform to prove that a transaction is valid without revealing the amount sent or received. The benefit of this new feature to institutional users is that they would be able to keep their financial activities private, away from competitors. It will help secure corporate treasury transfers, tokenized securities and institutional trading. Despite these privacy features, regulators can still be allowed to audit if necessary. Institutional users can cryptographically prove their balance to auditors, and authorized parties can verify transactions when necessary. Meanwhile, it also supports issuer controls like "freeze" and "clawback," which are already part of the XRPL token feature. XRP Ledger improves security infrastructure for institutional adoption You Might Also Like Tue, 03/31/2026 - 05:21 Ripple Prime Expands Hyperliquid Integration By Alex Dovbnya The XRP Ledger’s new feature is gaining traction because many blockchains already struggle with the "privacy versus transparency trade-off." So, with this, XRP Ledger is closer to meeting institutional finance needs and could trigger massive adoption. It can be said that Ripple is doing everything to ensure XRPL meets institutions’ expectations in all aspects of demand. Recently, the firm revealed it would strengthen XRPL security with artificial intelligence. The goal is to provide AI-assisted testing and better efficiency in monitoring and reacting to challenges, to deal with them earlier and faster. #XRP Ledger #ripple