XRP Ledger activates Multi-Purpose Token (MPT) standard for RWA use cases

The XRP Ledger (XRPL) formally launched the Multi-Purpose Token (MPT) standard on Wednesday, a new framework designed to simplify the issuance of real-world assets on the blockchain by institutions and developers. 

According to Ripple developers, the MPTokensV1 amendment was activated on October 1, at around 01:12 PM UTC, after receiving 28 approvals out of 38 validators. The upgrade embeds the new token standard directly into the XRP Ledger, which means developers no longer have to hard-code custom smart contracts for tokenization projects.

The new token standard, Multi Purpose Tokens, just got activated on the XRP Ledger ✅.

Let the tokenization of everything enter the next stage! pic.twitter.com/75YaXwjzql

— Vet 🏴‍☠️ (@Vet_X0) October 1, 2025

“MPTs are a new token standard on XRP Ledger built to meet the practical needs of developers and institutions… No custom contracts. No wasted cycles,” the RippleX developers account stated on X, announcing the launch of the MPT whitepaper.

Ripple said the new token standard will help financial institutions eliminate several problems in RWA tokenization, including the need for extensive security audits, complex bespoke contract logic, and meeting regulatory rules.

MPT standard to simplify RWA token launches

According to an insight by Cryptopolitan in September, MPT tokens have introduced a set of core features that could improve security, transparency, and interoperability in the tokenization market. 

Ripple developers have listed metadata integration as one of the provisions, which allows issuers to embed information directly into a token’s definition or link external resources through a URI field. 

The metadata helps assets to carry legal documentation, identifiers, or terms of use directly on the ledger as a clear and verifiable record.

MPTs also allow issuers to delegate day-to-day operations by authorizing a secondary key, known as a “Regular Key,” in activities such as freezing balances. The issuer’s Master Key, meanwhile, can be held securely offline to significantly reduce its exposure to security risks. 

The new standard will use XRPL’s native multi-signature functionality through Signer Lists, where issuers can set requirements like approvals for altering token settings or executing token clawbacks. 

MPT standard presents fungible token properties on XRPL

An explainer shared by Ripple engineer Kenny Lei on X stated that any MPT account can issue tokens, allowing issuers to create large quantities and varieties from a single address. 

However, they cannot hold their own tokens, and sending coins back to the issuer results in their automatic burn. Operational management encourages issuers to use separate hot wallets for holding their own assets. Burned tokens are treated as having been returned to the issuer for accountability.

More importantly, holders cannot be forced to accept tokens, and they must first establish a transaction that signals their willingness to hold them. Each MPT issuance is uniquely identified by a 192-bit Issuance ID, a distinct identifier for every issuance. 

Currency codes on MPTs can be displayed through metadata, but the system does not guarantee uniqueness of those codes.

Issuers also have the option to configure a supply cap to ensure that the number of tokens in circulation never exceeds a set limit. Tokens can be burned and reissued, although their circulation will always come below the established cap. 

As XRPL launches MPT tokens, Ripple’s chief technology officer, David Schwartz, is saying goodbye to the development team after 13 years of service. He was one of the original architects of the XRP Ledger in June 2012, alongside Jed McCaleb and Arthur Britt, in June 2012.

In a post on X, Schwartz revealed that he will retire from day-to-day responsibilities by the end of the year. The CTO said he had been “taking stock of my last 40 years” and called his time at Ripple a “wild ride.” 

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