Ripple Researchers Propose Privacy-Preserving Transfers for XRPL Multi-Purpose Tokens

The Ripple research team has published a paper on adding transaction privacy to the $XRP Ledger (XRPL).

The paper introduces Confidential Transfers for Multi-Purpose Tokens (Confidential MPTs). The goal is to enable institutional and regulated use cases, with issuer controls such as freezing and clawbacks.

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New paper from @Ripple’s @aanchalmalhotre, @ja_akinyele & Cenk, proposing confidential MPT tokens (XLS 33) that hide balance & transfer amts but keep supply verifiable. Stated aim is to support institutional/regulated use cases, w/ issuer controls like freeze & clawback. pic.twitter.com/NZQmbuJUZz

— WrathofKahneman (@WKahneman) March 29, 2026

The paper is authored by Murat Cenk, Aanchal Malhotra, and Joseph Ayo Akinyele. The Confidential MPTs would be a cryptographic extension of the XLS-33 token standard, which went live on the XRPL mainnet in October 2025.

The protocol replaces plaintext per-account balances with EC-ElGamal ciphertexts. Furthermore, it uses non-interactive zero-knowledge proofs to enforce transfer correctness and balance sufficiency without requiring decryption by validators.

Meanwhile, sender and receiver identities remain visible, preserving XRPL’s account-based model.

“To accommodate regulatory and institutional requirements, Confidential MPTs provide cryptographic auditability through an on-chain selective-disclosure model based on multi-ciphertext balance representations and equality proofs, while remaining compatible with simpler issuer-mediated audit models,” the abstract reads.

The timing aligns with shifting regulatory attitudes toward on-chain privacy. In a recent report submitted to Congress in early March, the US Treasury Department acknowledged that lawful users of digital assets may rely on mixers when transacting on public blockchains.

The US Treasury’s March 2026 report acknowledges lawful users have valid reasons to seek privacy on public blockchain.

We’re solving this with Confidential MPTs on XRPL – regulatory visibility where it matters, user privacy where it should.
This is the standard to build toward. pic.twitter.com/vtP66yrGCz

— Aanchal Malhotra (@aanchalmalhotre) March 9, 2026

The privacy paper arrives as Ripple simultaneously strengthens the network’s security foundation. The firm recently outlined an AI-driven security strategy for XRPL.

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