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XRP Ledger has welcomed a new token standard as the XLS-33 MPToken V1 amendment goes live on XRP Ledger following a successful 14-day activation period.
Multi-Purpose Tokens (MPTs) are a form of fungible token on the XRP Ledger designed for greater efficiency and ease of use based on what was learned from trust line tokens on the XRP Ledger.
Vet, an XRPL dUNL validators, shared this milestone in a recent tweet, noting that the new token standard, Multi-Purpose Tokens, were just activated on the XRP Ledger, taking tokenization on XRPL to the next stage.
In the past month, the credentials amendment went live on the XRPL in a key milestone.
Kenny Zlei, a Ripple engineer, shared qn insight into Multi-Purpose Tokens (MPTs), a new native token standard designed to make issuing real-world assets on-chain far simpler, safer and more aligned with how financial institutions operate.
Unlike most token standards, MPT is not built with custom smart contracts, being embedded directly into the protocol. That means every token issued on XRPL can include built-in features for compliance, control and metadata, without adding layers of code or risk.
This matters because most institutions exploring tokenization today face the same friction: security audits, bespoke contract logic and regulatory uncertainty. MPT removes a lot of that overhead by handling core requirements natively at the ledger level.
MPTs represent a significant step forward for broader use cases such as fractionalized real-world assets, tokenized money market funds, closed-loop loyalty tokens and on-chain collateral for Institutional DeFi, making them easier to launch and integrate.
Multi-Purpose Tokens serve as core building blocks for institutional DeFi as they underpin vault share issuance in the lending protocol, unlock secondary market activity with MPT DEX and support future Confidential MPTs that enable privacy-preserving transfers.
