TL;DR
- A prominent XRP Ledger contributor says privacy features are approaching the network through the proposed XLS-372 amendment.
- The update introduces Confidential Multi-Purpose Tokens, designed to enable private transactions while maintaining regulatory compliance.
- At the same time, a U.S. Treasury report recognizes the legitimacy of blockchain privacy tools, reinforcing the view that financial privacy on public ledgers can coexist with lawful oversight.
The XRP ecosystem is discussing a shift toward stronger transaction privacy as developers explore new technical standards. A well-known XRP Ledger validator known as Vet recently confirmed that “privacy is coming for XRP,” referring to ongoing work related to the XLS-372 amendment.
Privacy is coming on XRP. Significant enabler for institutional usage.
Aanchal greatly noted, we have an upcoming amendment tackling exactly this.
Getting us the best privacy version for issued assets (MPTs), by combining privacy and compliance with selective disclosure keys. https://t.co/GC5T04IQbR
— Vet (@Vet_X0) March 9, 2026
The proposal centers on Confidential Multi-Purpose Tokens, which could allow users to hide transaction details such as balances or payment amounts while preserving the security and verification model of the ledger. Supporters say the idea reflects a broader push across crypto to balance transparency with user privacy.
XRP Ledger Privacy Proposal Gains Attention
XLS-372 aims to introduce confidential transaction capabilities directly into the XRP Ledger. The design relies on cryptographic techniques that obscure sensitive data while transactions remain verifiable by the network.
Under the proposal, Confidential Multi-Purpose Tokens would operate similarly to privacy tools used in other blockchain systems. The approach discussed for XRPL focuses on selective disclosure. Users could keep transaction details private while still allowing authorized entities to review information when legally required.
Supporters argue that privacy is a standard feature of financial systems. Businesses often want to protect supplier payments, investors may prefer confidential trading activity, and charities frequently aim to shield donor identities. On fully transparent blockchains, this information can become publicly traceable.
U.S. Treasury Report Recognizes Blockchain Privacy
Interest in privacy tools has increased after a March 2026 report from the U.S. Treasury acknowledged that blockchain users may have legitimate reasons to use privacy technologies such as mixers or anonymization systems.
The report notes that financial privacy can protect data about personal wealth, business transactions, and charitable donations. It also states that using such tools does not automatically imply illegal activity.
For developers in the XRP ecosystem, the report adds momentum to proposals like XLS-372. If validators eventually approve the amendment, the XRP Ledger could evolve toward a model that combines transparency with stronger privacy protections for users.
