XRP News Today: XRP Ledger Update 2.5.0 Boosts Institutional Utility, Price Rises 6%

The XRP Ledger has officially launched Software Update 2.5.0, introducing features aimed at expanding its utility in institutional and enterprise applications. The update, now live on the network, brings a wide range of performance improvements and new functionalities that position XRPL closer to competitors like Ethereum and Solana.

One of the most significant additions in this version is the inclusion of token escrow functionality. This feature allows the locking and timed release of tokens such as RLUSD and other XRPL-based assets. This supports use cases including vesting schedules and structured payouts, helping decentralized applications manage user deposits more effectively.

The update also introduces permissioned decentralized exchange (DEX) support and permission delegation capabilities. These additions aim to increase network control options for regulated use cases, offering developers tools to manage access and execution authority more precisely.

In addition to new tools, the update provides several backend fixes. These include corrections to RPC response codes related to transaction errors and improved interactions between NFTs and trustlines. The improvements are expected to boost the platform’s efficiency, stability, and accuracy in executing commands.

Prior to the release, the XRP Ledger recorded a notable uptick in network activity. Daily address creation surged by nearly seven times, while whale wallet activity reached new highs. These metrics reflect rising interest in the network’s capabilities, particularly as other blockchains face slowdowns.

Following the upgrade, XRP’s price rose approximately 6 percent, reaching $2.20 and recovering recent losses triggered by broader market volatility. This comes as Ethereum and Solana show signs of reduced network momentum, with Solana’s meme coin activity declining and capital outflows intensifying.

The XRP Ledger has rolled out its latest update, version 2.5.0, introducing a suite of new features and enhancements designed to bolster its functionality and governance framework. This update, released on October 25, includes several key amendments that are set to undergo formal voting within the XRP Ledger amendment process. These changes require approval from over 80% of trusted validators over a two-week period to be implemented.

One of the standout features of this update is the ability to batch transactions, allowing users to aggregate multiple operations into a single transaction. This enhancement is expected to significantly improve network activity and efficiency. Additionally, the update introduces Token Escrow, which enables escrow for IOUs and multipurpose tokens, adding a layer of security and functionality to the network.

The update also includes Permissioned DEX, which grants decentralized exchange (DEX) operators the ability to control participation in compliance with regulatory requirements. This feature is particularly important for institutional adoption, as it ensures that DEX operations can adhere to legal standards. Furthermore, the AMMv1_3 amendment enhances risk management for Ripple’s automated market maker (AMM) by introducing invariants checks—a critical safeguard designed to prevent significant rule violations during fund processing.

Ripple has also unveiled two key features in this update: NFToken Trust Line Enforcement (V2) and PayChannel Auto-Close Robustness. The former functionality blocks unauthorized users from receiving NFTs, ensuring that senders must establish trust lines with recipients in advance. The latter feature prevents expired payment channels from being unintentionally reactivated by improving reset mechanisms after expiration.

The update also includes enhancements in transaction relay logic, network input/output (I/O) capacity, and greater accuracy in multi-signature simulation processes—all aimed at optimizing the overall user experience and operational resilience. These improvements underscore Ripple’s commitment to advancing the capabilities and security of its XRP Ledger, offering both improved utility and compliance features for users and operators alike.

The introduction of these amendments has been in discussions for years, and their implementation marks a significant milestone for the XRP Ledger. The new features are expected to push the network forward, enhancing its appeal for institutional adoption and strengthening its position in the cryptocurrency ecosystem.