The XRP Ledger has activated the PermissionDelegationV1_1 amendment, letting owners of large accounts delegate limited transaction permissions to third-party accounts while keeping master keys offline. Retail wallets are unaffected; the change targets banks and hedge funds that need strict role separation before committing institutional capital.
The XRP Ledger has officially activated the PermissionDelegationV1_1 amendment, with network validators confirming the EnableAmendment transaction in ledger 107,524,865. Developers have already begun testing the first operations built on the feature.
Ordinary retail wallets will keep working exactly as before. Instead, the upgrade turns the XRP Ledger into what amounts to a secure vault for large capital, built to meet the operational standards of big businesses and traditional finance.
A delegation tool built for institutions
Permission Delegation lets the owner of a large account grant a third-party account, a delegate, up to 10 strictly limited permissions, such as making routine payments or approving trust lines. The delegate signs transactions with its own keys, while the master key controlling the primary wallet stays offline or in cold storage.
Permissions can be revoked at any moment, and the amendment makes it technically impossible to delegate critical functions such as changing the master keys. That key isolation is the core of the design: it lets an institution separate roles among treasurers, operations staff, and auditors without exposing the wallet that actually holds the funds.
Why banks and funds need this structure
Large banks and hedge funds cannot operate under a one-wallet, one-key model because regulatory requirements demand a strict separation of duties. The new feature gives them that structure without adding custody risk, which in turn clears a path for the secure deployment of regulated stablecoins such as Ripple USD and tokenized real-world assets.
Since XRP is the network's native fuel used to pay transaction fees, an influx of institutional capital would directly affect the blockchain's long-term utility. The source describes the amendment's activation as not a speculative price catalyst but a systematic step toward preparing the platform for the arrival of major capital.
The true scale of the shift will become visible only once major custodial services integrate the feature into their own interfaces.
Source: U.Today
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