Ripple Proposes Confidential XLS-33 Tokens Hiding XRP Balances For Big Banks

• Ripple proposes XLS-33 tokens to hide XRPL balances while keeping total supply verifiable for institutional use.
• XLS-33 uses zero-knowledge proofs and EC-ElGamal encryption to secure transactions without revealing amounts.
• Issuers can freeze, audit, or clawback tokens, keeping compliance intact for large banks on XRPL.

Ripple has proposed a new token standard, XLS-33, called Confidential Multi-Purpose Tokens, aimed at hiding account balances on the XRPL.

The proposal focuses on institutional adoption by keeping financial data private while maintaining verifiable ledger integrity.

Confidential Token Design for Institutions

XLS-33 is designed to hide both transaction amounts and account balances. Total supply remains verifiable, which keeps the blockchain trustless and transparent. The system uses zero-knowledge proofs to validate transactions without exposing actual numbers.

Encrypted balances are implemented using EC-ElGamal technology. This allows users to confirm ownership and validity while keeping sensitive data private. Banks can use the system without exposing account details publicly.

🚨UPDATE: Ripple PROPOSES CONFIDENTIAL MPT Tokens (XLS-33) — Hiding XRPL Balances For BIG BANKS While Staying COMPLIANT 🤯🔥

A new research proposal from @Ripple introduces CONFIDENTIAL MULTI-PURPOSE TOKENS (XLS-33) — solving one of the BIGGEST BARRIERS stopping MAJOR… https://t.co/3fnsXCFiZ1 pic.twitter.com/vgXPWQM11T

— Diana (@InvestWithD) March 30, 2026

The design also addresses privacy concerns that often discourage institutions from using public blockchains. By keeping transaction details hidden, banks can join without revealing internal operations. The system balances transparency and confidentiality effectively.

XLS-33 also integrates with Ripple’s existing XRPL infrastructure. This means institutions can adopt it without changing core processes. The design maintains performance while introducing enhanced privacy controls.

Compliance Features for Banks

Even with confidential balances, issuers can freeze, audit, or clawback tokens if required. This ensures regulatory compliance remains intact. Ripple emphasizes that XLS-33 is built for both privacy and oversight.

Banks can track and verify transactions internally without revealing numbers publicly. The system supports audits while protecting sensitive data. Regulators can also access necessary information in a controlled way.

Ripple President Monica Long says XRPL’s decentralized identity turns data into portable, user-controlled tokens powered by zero-knowledge proofs. This allows institutions to prove transactions are valid without revealing raw numbers.

Ripple President Monica Long says #XRPL’s decentralized identity turns data into portable, user-controlled tokens powered by zero-knowledge proofs.

DNA Protocol has launched its zk-solution for institutional identities and credentials, converting sensitive records into XDNA… pic.twitter.com/tJAaF0zn0z

— Skipper | XRPL (@skipper_xrp) March 30, 2026

Similarly, DNA Protocol has launched a zero-knowledge solution for institutional identities and credentials.

Their XDNA tokens convert sensitive records into private, verifiable tokens. This approach aligns with Ripple’s vision for confidential financial data on public blockchains.

Encryption and Zero-Knowledge Proofs Ensure Security

XLS-33 relies on zero-knowledge proofs to confirm transactions. Each balance is encrypted so third parties cannot view private information. Despite encryption, total supply remains verifiable for transparency.

EC-ElGamal encryption ensures data stays secure during transfers. Issuers can audit accounts or freeze tokens when necessary. This provides banks with operational control alongside privacy protection.

The system mirrors solutions like DNA Protocol’s XDNA tokens. XDNA also converts private records into verifiable, encrypted tokens. Ripple’s XLS-33 follows similar principles for financial confidentiality.

XLS-33 is compatible with existing XRPL systems. Institutions can integrate it without disrupting their current workflows. This design allows a seamless balance between security, privacy, and usability.

XLS-33 Could Encourage Broader Institutional Adoption

XLS-33 may encourage major banks to join XRPL networks. Hidden balances solve a key concern about public exposure. Confidential tokens could increase large-scale adoption of blockchain technology.

The ledger remains transparent while sensitive data stays private. Banks can still audit transactions and enforce rules internally. This combination provides confidence for institutional participation.

Ripple believes XLS-33 could facilitate trillions in future transactions. Private yet verifiable ledgers may unlock new financial flows. The proposal shows how blockchain can serve both transparency and privacy needs.

If adopted, XLS-33 could expand XRPL’s user base among large organizations. Banks can use blockchain without compromising internal or regulatory requirements. This may mark a new phase in institutional blockchain adoption