XRPL Activates Deep Freeze, a New Tool to Push Compliance and Security Standards for Issued Tokens to the Next Level

Key Takeaways

* The XRP Ledger (XRPL) has now activated Deep Freeze, a new tool that pushes the boundaries of compliance and security standards for tokens issued on the blockchain.

* While XRP itself remains unchanged, Deep Freeze introduces protocol-level granularity in controlling issued assets, allowing issuers to directly impose constraints on accounts.

* Deep Freeze is now live on the XRPL

Built for issued tokens only (not XRP), it offers essential controls for:

Regulatory compliance

Fraud prevention

* The amendment, designated as XLS-77d, marks a significant step towards supporting the kind of institutional-quality asset management found in conventional finance.

* With Deep Freeze, XRPL is well-positioned as a viable avenue for stablecoin issuers and financial institutions seeking a secure and compliant infrastructure, says fintech analyst Clara Renner.

* The amendment was voted into implementation using XRPL’s decentralized governance mechanism, highlighting the network’s adaptability to real-world security and regulation demands.

Earlier, issuers in the XRP Ledger utilized trustline freezes that had the effect of inhibiting new transactions for a given asset pair. This was not a perfect approach, as users could still send any held assets, and the freeze was implemented individually for each asset and user.

However, Deep Freeze accomplishes this limitation by rendering the whole account incapable of releasing the asset, effectively halting all outgoing token transactions. This becomes critical in cases of legal holds, fraud prevention, or broader sanctions enforcement.

Unlike centralized blockchain implementations, XRPL’s version retains both visibility and decentralized integrity, offering a dual advantage for transparency and control. In essence, Deep Freeze automates processes that institutions would otherwise handle in handling bulk issuance of tokens or needing to impose compliance on multiple users.

This becomes particularly relevant for institutions such as Ripple, Braza Bank, and Societe Generale Forge that already use XRPL’s infrastructure to run stablecoins.

New XRPL Feature Appeals To Institutions

Institutions are now able to easily enforce regulatory mandates without the need for third-party intervention, which is crucial in a globalized financial landscape.

As compliance-friendly features continue to be in high demand, the availability of Deep Freeze should see increased adoption by heavyweight stablecoin issuers like Circle.

It ensures that there are protocols in place to achieve global compliance standards while maintaining the efficiency for which blockchain technology is known. The feature is now live and accessible for issuer use, highlighting the commitment of the XRP Ledger to creating a compliant-ready blockchain ecosystem.