XRP Releases Major Update Targeting Wall Street Giants

$XRP Ledger (XRPL) has launched a new authorization system that allows banks, stablecoin issuers, and tokenized fund managers to manage accounts more securely and flexibly.

The activated PermissionDelegationV1_1 update allows enterprise users to delegate the authority to perform specific actions to different accounts while keeping the private keys of their main accounts offline.

The new system allows organizations to grant limited permissions to other accounts for actions such as customer verification, payment processing, and account freezing, without transferring control of their main account. A maximum of 10 different permissions can be delegated through a single account, and these permissions can be revoked at any time by the main account holder.

This feature aims to address security concerns faced by financial institutions that manage large amounts of digital assets.

In traditional storage systems, keeping private keys offline increases security but can slow down transaction processing. Keeping keys online, on the other hand, can put entire assets at risk in the event of a potential attack.

$XRP Ledger’s new system strikes a balance between these two approaches. Organizations can store the private keys of their main accounts in cold storage while granting only the necessary permissions to accounts used for daily operations. This way, if one of the authorized accounts is compromised, the transactions an attacker can access are limited to those pre-defined permissions.

$XRP Ledger’s new feature directly supports delegation of authority transactions at the protocol level, which is typically performed via smart contracts on networks like Ethereum.

This allows organizations to create authorization hierarchies among their own accounts without needing a separate smart contract or third-party custody service.

The update required approval from validators on the network to be activated. For protocol changes to take effect on the $XRP Ledger, support from at least 80% of active validators is necessary.

The PermissionDelegationV1_1 property is now available to all participants on the network.

However, it is not yet known to what extent the new system will be adopted by corporate users.

*This is not investment advice.