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Editorial illustration for: MPT and AMM: xrpld 3.4.0 strengthens transfer restrictions
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MPT and AMM: xrpld 3.4.0 strengthens transfer restrictions

2026-09-26

The release applies the CanTransfer property of Multi-Purpose Tokens to AMM LPToken transfers. When an MPT in a pool is non-transferable, the restriction can prevent LPToken.

Event: 16 September 2026

Version 3.4.0 now applies the CanTransfer property of Multi-Purpose Tokens to AMM LPToken transfers. In practice, when an MPT used in a pool is non-transferable, this restriction can prevent LPToken movement between holders.

This fix is particularly relevant for assets whose issuer imposes transfer rules. Without consistency between the underlying asset and associated liquidity representations, an application could create paths that bypass the issuer's original intent.

The change illustrates a central challenge in tokenized finance: rules must remain consistent when assets pass through DeFi layers. It does not remove smart-finance or liquidity risks, but it improves enforcement of native protocol properties.

Risks / limitations

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Sources

The author personally holds XRP. This content is for informational purposes only and is not financial advice.