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XRP Ledger developers have bundled four proposed code changes into a single amendment, fixCleanup3_5_0, intended to stop restricted tokens from reaching accounts that have not received issuer approval. Bitcoinist reported that the package targets exceptions in how approval requirements are enforced, and that it had not been merged into the network’s main software or activated on mainnet as of the October 30 report.
The fixes concern restricted issued tokens — assets such as regulated stablecoins or tokenized funds where an issuer screens holders for identity or eligibility — rather than the native XRP asset. Crypto Briefing reported that the proposal surfaced in late October 2026, with updates posted the week of October 27.
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Key facts
- The four changes are grouped under the amendment name fixCleanup3_5_0 and address trust-line handling, automated market maker pools and consistency of transaction checks, Crypto Briefing reported.
- One fix would require authorization for both assets in an AMM pool before an account can acquire its liquidity provider token, closing routes through payments, trading offers and NFT offers involving LP tokens.
- A second fix would close an exception where an authorization check in the payment engine applied only when a trust line’s balance was zero, letting an unapproved line keep receiving tokens once it held a balance.
- Activation requires more than 80% of trusted validators — about 29 of 35, per AMBCrypto — to hold support for two consecutive weeks.
- AMBCrypto reported that XRP Ledger ranked 10th among networks for tokenized assets with $642.5M, up 28% in the prior 30 days, just behind Base at $650M.
What the four changes target
On the XRP Ledger, holding an issued token runs through a trust line, the standing relationship between an account and the token’s issuer. Issuers can restrict their tokens so only accounts they approve can hold them. Bitcoinist reported that developers found the requirements were not applied evenly — one gap sat between depositing directly into a pool and receiving pool shares by another route, another in trust lines that already carried a balance, and a third in rules that varied across ledger features.
Accounts that already hold restricted tokens without approval would generally be limited to returning them to the issuer, which could then approve the trust line and restore normal use. Crypto Briefing noted this retroactive approval option gives issuers room to resolve legitimate edge cases instead of stranding balances. AMBCrypto framed the work as part of the chain’s push to attract institutional players using tokenized stocks and other regulated assets.
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Foundation says no outside exploitation found
The XRP Ledger Foundation has described the proposals as routine protocol hardening rather than a response to a security incident. Hussein “Vet” Zangana, the foundation’s director of community and product, told CoinDesk the discussion concerned the guarantees the protocol should provide; Bitcoinist reported his statement that known unauthorized balances came from payments by issuers themselves or from accounts those issuers had previously approved.
The package builds on earlier work. An August 2025 amendment addressed a loophole tied to NFT trading, and Crypto Briefing reported the new fixes extend the same kind of scrutiny to trust lines, AMMs and transaction checks. AMBCrypto linked the timing to continued security scanning since an AI-flagged risk to the network in September, though the foundation attributed the proposals to routine hardening.
Why it matters
Issuers who rely on restrictions — typically projects needing to control who holds their assets for compliance reasons — would get enforcement that matches what they likely assumed was already in place. For holders, the practical difference comes down to whether their account carries issuer approval. Because identifiable unapproved balances trace back to issuers or prior approvals, the pool of affected accounts appears narrow.
What to watch
The sequence from here is fixed: finish review, land the code in a main XRPL software release, then build validator support past the 80% threshold and hold it for the full two weeks. No activation date can be set until validators weigh in, and Crypto Briefing noted the separately proposed XRP Ledger Batch amendment faces its own validator vote.
Sources: Bitcoinist, Crypto Briefing, AMBCrypto
