CoinDesk
XRP Ledger developers have proposed four fixes to prevent restricted tokens from reaching accounts without issuer approval. Bundled as the fixCleanup3_5_0 upgrade, the changes have not been merged into the network’s main software and are not active on mainnet. Activation would require support from more than 80% of trusted validators for two consecutive weeks.
Why it matters
Issuers of regulated assets, including stablecoins and tokenized funds, can require account approval before a holder receives their tokens. The proposed changes would close exceptions in those checks, including one that could let an account add tokens to a trust line that already had a balance. Another would require approval for both tokens before an account could enter an automated market maker pool.
The XRP Ledger Foundation described the work as routine protocol hardening, not a response to a security incident. It said it knows of no outsider exploiting the remaining exceptions. According to the Foundation, any unapproved balances that exist came from issuers or accounts they had previously approved.
Market impact
If the changes activate, an unapproved holder of a restricted token would be able to send it only back to its issuer. The issuer could later approve the holder’s trust line, restoring normal use. The proposal extends approval checks across current and future XRP Ledger features, a relevant control for issuers building regulated-token products on the network.
The near-term test is governance, not a live mainnet change: the fixes must first be merged into the software, then win the required validator support for two straight weeks. The Foundation also said developers had previously examined ways tokens could reach unapproved accounts through NFT trades, before an August 2025 fix.
Frequently asked questions
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What would the XRP Ledger restricted-token fixes change?
The four proposed changes would close exceptions that can let restricted tokens reach accounts without issuer approval and extend approval checks across network features.
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What happens to restricted tokens held without issuer approval under the proposal?
They could only be sent back to the issuer. The issuer could later approve the holder’s trust line and restore normal use.
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How does the fixCleanup3_5_0 upgrade get activated?
The changes must be merged into the XRP Ledger’s main software, then receive support from more than 80% of trusted validators for two consecutive weeks.
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Has the XRP Ledger Foundation reported an outsider exploiting the exceptions?
No. The Foundation says it knows of no outsider exploiting the remaining exceptions and called the work routine protocol hardening, not a response to a security incident.
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Why do issuers require approval to hold some XRP Ledger tokens?
Issuers of regulated assets such as stablecoins or tokenized funds may require approval before someone holds their tokens, often to conduct identity checks.
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