XRP Ledger (XRPL) outlined a strategic roadmap for increasing institutional definition and programmaticity within its ecosystem.
The initiative focuses on integrating compliance-driven solutions, expanding lending capabilities, and introducing innovative tokenization tools, enhancing the role of XRPL in facility finance.
These advances will allow financial institutions to gain new opportunities to tokenize real-world assets (RWAS), make use of Stablecoins more effectively and participate in decentralized liquidity markets.
The upcoming features of XRPL include:
Distributed Identity
According to the roadmap, XRPL will integrate distributed identity (DID) with qualification-based verification this year to enhance compliance and security.
This system allows institutions to establish permitted domains that can only be joined by verified users. Authorized distributed exchanges (DEXs) are also under development, ensuring that all participants meet regulatory requirements without compromising decentralization.
According to Ripple:
“Allowed domains and permitted DEX protocols enforce membership and compliance rules by requesting appropriate DID-based credentials while maintaining the open nature of XRPL.”
This approach addresses the growing need for financial infrastructure on the chain, consistent with global financial regulations.
Multipurpose token
Another important upgrade to the network is the introduction of Multipurpose Tokens (MPTs), which provide a flexible framework for representing traditional financial products.
Traditional financial assets such as bonds and structured products often require extensive metadata that phibre tokens cannot efficiently capture. To address this, XRPL developers have introduced MPT as a flexible standard. This bridges the alternative and impossible token attributes.
This means that MPTS will increase flexibility and unlock new use cases in digital finance, allowing institutions to tokenize and trade RWAs.
XRPL lending
XRPL introduces an on-chain lending protocol designed specifically for the institution’s finances.
The system integrates with Ripple Payments, Dex, RWAS and Stablecoins, leveraging the default RLUSD vault for liquidity optimization.
The institution has access to a loan pool with permitted access and fixed term non-financed lending options.
The lending mechanism promotes a compliant on-chain credit market, allowing banks, fintech companies and asset managers to participate in Defi with regulatory protections. A verification vote for these upgrades is expected in the second quarter of 2025.
Update programmability
This year, XRPL will improve programmerism with extensions, a lightweight framework that adds modular functionality to on-chain functionality without introducing a complete smart contract.
This framework allows developers to customize features such as escrow and automatic market makers (AMMs) while maintaining security and efficiency.
The programmerism roadmap includes a step-by-step rollout. Smart Escrow is scheduled to be tested in early 2025, with smart contracts continuing later this year.
evm sidechain
Additionally, XRPL’s Ethereum Virtual Machine (EVM) Sidechain will be launched in the mainnet in the second quarter of 2025, allowing you to deploy distributed applications (DAPPs) using solicity.
This cross-chain solution increases interoperability and allows access to the XRPL ecosystem. EVM Sidechain is expected to attract developers looking for interoperability, while benefiting from XRPL’s established financial infrastructure.
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