XRP Ledger Activates New Security Controls for Banks and Stablecoin Issuers

Key Takeaways

• The XRP Ledger activated PermissionDelegationV1_1 on October 8, which allows account owners to assign specific tasks while keeping their main keys offline.
• This feature lets businesses separate key functions like payments and compliance, with delegated accounts restricted by action type rather than spending limits.
• Users are advised to avoid delegating the PaymentBurn permission until a fix is released, as a bug currently allows delegates to create tokens instead of just burning them.

The XRP Ledger activated PermissionDelegationV1_1 on October 8, a feature that allows account owners to authorize other accounts to perform specific tasks without sharing their primary keys, according to monitoring site XRPL Dashboard.

The upgrade gives banks, stablecoin issuers, and tokenized fund operators a way to separate operational duties while retaining control over their accounts.

Upgrades require over 80% approval from trusted validators, the operators confirming transactions, for two consecutive weeks, which equals at least 29 out of the current 35 supporters.

The countdown for delegation reset in September after approval fell below that threshold.

Read More: XRP Ledger Revives Upgrade to Separate Payment and Compliance Roles

Separate Payments and Compliance

Businesses making regular crypto transactions must keep signing keys online, but exposing keys with broad permissions increases the impact if a system is hacked.

According to XRPL documentation, delegated accounts sign transactions using their own keys and can perform only approved actions. Those permissions can be changed or revoked by owners at any time.

For instance, a stablecoin issuer can allow a compliance account to approve new customers while keeping the keys with full account control offline. This can limit the damage if an operational account’s keys are compromised.

Each delegated account can receive up to 10 permissions. However, these restrict the kinds of actions it can perform, rather than automatically imposing spending limits.

Therefore, businesses should assess the authority granted to each account.

Token-Burning Warning Remains

Official guidance tells users not to delegate PaymentBurn until the fixCleanup3_4_0 amendment activates.

The permission is intended to destroy tokens, but under certain conditions, delegated accounts can create new tokens under certain conditions.

The warning concerns tokens issued on XRPL, rather than newly minted XRP. Other granular permissions are unaffected.

Get started on WEEX with a simple 40 USDT reward. Deposit 100 USDT, make your trade, and claim the bonus. 

Disclaimer: All content on The Moon Show is for informational and educational purposes only. The opinions expressed do not constitute financial advice or recommendations to buy, sell, or trade cryptocurrencies. Trading involves significant risk and may result in substantial losses. Always seek independent financial advice before making investment decisions. The Moon Show is not responsible for any financial losses or decisions made based on the information provided.

Please view the full disclaimer at: https://themoonshow.com/disclaimer