Overview
- Token Escrow (XLS-85) went live on XRPL mainnet on Feb. 12 and was introduced in rippled v2.5.0, with reports citing 88% validator support (30 of 34).
- Escrow now applies to Trustline-based tokens and Multi-Purpose Tokens, enabling time-locked and condition-based releases via EscrowCreate, EscrowFinish and EscrowCancel, with expiration required for token escrows.
- Issuers must enable specific flags—Allow Trust Line Locking for Trustline tokens and Can Escrow plus Can Transfer for MPTs—and they cannot create escrows using their own issued tokens.
- For tokens that require authorization, senders and recipients must be pre-authorized for escrow creation, release or cancellation flows, including refunds after expiration.
- XRPL documentation notes escrow involves extra transactions and higher fees with Crypto-Conditions, which are limited to PREIMAGE-SHA-256, and an EscrowFinish with a fulfillment carries a stated minimum fee that scales with fulfillment size; RippleX highlights use cases such as vesting, conditional payments, OTC-style swaps, treasury controls and tokenized asset settlement.