XRP Ledger moves to tighten security for restricted tokens

XRP Ledger developers proposed four fixes to close loopholes letting restricted tokens reach unauthorized accounts. The changes, not yet active, would enforce stricter issuer approval and boost token security.

XRP Ledger developers have proposed four fixes, grouped under the fixCleanup3_5_0 amendment, to address loopholes that allowed restricted tokens to reach accounts without issuer approval. These changes are designed to strengthen controls over token transfers and trading, ensuring that only authorized accounts can hold permissioned assets such as stablecoins or tokenized funds. The proposals focus on trust-line management, automated market maker pools, and transaction consistency. They would require explicit authorization before accounts can receive or trade restricted tokens. Unapproved holders would generally only be able to return tokens to the issuer unless granted authorization. The fixes are still under review and have not yet been activated on the main network. No known cases of external exploitation have been reported. The XRP Ledger Foundation describes the effort as routine protocol strengthening to ensure consistent enforcement of issuer requirements across the network.