The XRP Ledger (XRPL) has activated the XLS-85 amendment, introducing native escrow functionality for all Trustline-based tokens and Multi-Purpose Tokens (MPTs) as of February 12, 2026. This upgrade significantly expands XRPL's programmable settlement capabilities beyond XRP, allowing stablecoins and other IOUs to benefit from secure, conditional settlement. Token issuers must subscribe to this feature through issuer-level escrow flags, ensuring compliance and governance. The XLS-85 amendment lifts previous limitations, enabling escrow for issued tokens and enhancing transaction types like EscrowCreate, EscrowFinish, and EscrowCancel. This development opens new use cases, such as token vesting schedules and institutional settlement workflows, without the need for custom smart contracts. While the upgrade boosts XRPL's infrastructure, its immediate impact on XRP demand remains uncertain, as it primarily affects Trustline-based tokens rather than XRP itself. Despite the structural improvements, the direct demand for XRP is not immediately increased by XLS-85. However, if stablecoin issuers and institutions adopt XRPL's native token escrow, network activity could rise, potentially driving incremental demand for XRP due to increased transaction volume and account creation. At present, XRP is trading at $1.36, reflecting broader market conditions.