XRP Ledger retries upgrade that lets banks split payment and compliance duties
XRP Ledger restarts key security update
The XRP Ledger has restarted a software update that would allow businesses to split their account duties. The new version, called PermissionDelegationV1_1, entered a 14-day countdown for activation on September 21.
If enough network validators continue to support the change, the upgrade will go live on October 5 at 11:18 UTC. The update fixes a serious security flaw found in an earlier version of the feature.
Key details of the upgrade
- Activation Date: October 5, 2026, at 11:18 UTC, provided support remains high.
- Requirement: At least 28 of the 35 trusted validators must back the change. If support drops below this, the clock resets.
- Function: Allows an account to give another account limited powers, such as making payments or approving customers.
- Security: The main account keeps full control of its keys and can revoke these powers at any time.
How the feature works
The update allows an account to divide its authority into specific jobs. For example, a stablecoin issuer could give an internet-connected compliance system permission to approve customers. This system can check users without getting access to the issuer’s main keys that control the money.
Separately, an operations account could be allowed to make payments. This account cannot change the main keys or give power to anyone else. The main account can assign up to 10 permissions to different delegates and change them later.
Previous version had critical bug
This is the second attempt to add this feature to the XRP Ledger. The original version contained a flaw that could let attackers drain a victim’s XRP balance through unauthorized transaction fees.
In the flawed version, the software checked if an account had permission before verifying its signature. However, certain failures still charged a fee. This meant money could be deducted before the system realized the signature was invalid.
A community tester reported this issue on September 15, 2025, while testing outside the main network. Validators were advised to reject that version, and it never activated.
Why this matters for institutions
The upgrade makes the XRP Ledger more useful for institutional payments. Banks and large businesses often separate tasks like payments, compliance, and operations among different teams or systems.
By allowing these separate duties on the blockchain without handing over full control, the network becomes more appealing as a tool for stablecoin issuers and custodians. It mirrors how traditional banks manage internal security and operations.
What happens next
The network will monitor validator support over the next 14 days. If at least 28 validators continue to support the amendment, it will activate automatically on October 5. If support falls, developers must re-propose the change.
Sources
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