Core Insights - The XRP Ledger (XRPL) activated the XLS-85 amendment on February 12, 2026, enabling native escrow for all Trustline-based tokens and Multi-Purpose Tokens, which enhances secure and programmable asset settlement [1][2] - The upgrade is expected to expand XRPL's utility and may facilitate institutional capital deployment, although its direct impact on XRP's price remains uncertain [1][5] Group 1: Upgrade Details - XLS-85 removes the previous limitation of escrow functionality being exclusive to XRP, allowing various assets, including stablecoins and real-world assets, to utilize secure, conditional on-chain settlement [2][3] - The upgrade enhances existing transaction types such as EscrowCreate, EscrowFinish, and EscrowCancel, while ensuring that token issuers maintain control through issuer-level flags, preserving compliance and governance structures [3] Group 2: Institutional Implications - The XLS-85 upgrade positions XRPL as institution-ready, potentially leading to increased capital deployment by institutions starting from February 12 [4] - The recent activation of Permissioned Domains further supports the expansion of institutional use cases on XRPL [4] Group 3: Potential Use Cases - The upgrade opens avenues for various applications, including token vesting schedules, institutional settlement workflows, treasury management for issued assets, conditional stablecoin payouts, and structured financial products built directly on XRPL [6]