XRP Ledger Freeze, Deep Freeze and Clawback Explained

XRP itself cannot be frozen or clawed back on the XRP Ledger. Tokens issued on the ledger can be: their issuer may freeze one holder, freeze everything it issued, deep-freeze a holder, or claw tokens back, depending on the settings it chose. Before you hold a token, check who issued it and which of these powers the issuer kept.

XRP and tokens are different

On the XRP Ledger, XRP is the native asset. Everything else is a token, tracked in trust lines. Trust lines enforce a simple rule: no one can make you hold a token you do not want.^[1]

The freeze rules follow from that split. The XRP Ledger documentation says no one can freeze XRP on the ledger. Freezes apply only to issued tokens. Custodial exchanges can still freeze funds they hold for customers, but that happens off the ledger.^[2]

The documentation gives the reasons an issuer might freeze: to meet regulatory requirements, or while investigating suspicious activity.^[2]

The freeze types

Setting	What it covers	What the holder can still do
Individual Freeze	One holder's trust line	Receive the token from others; send it only directly to the issuer^[2]
Global Freeze	Every token the issuer has issued, for all holders^[2]	Depends on the issuer lifting it
Deep Freeze	One holder's trust line	Neither send nor receive the token from others^[3]
No Freeze	The issuer's own powers	Protects holders: the issuer gives up freezing for good^[2]

A few details matter:

Deep Freeze builds on a normal freeze. It can only be put on a trust line that is already frozen, or frozen at the same time.^[3] It needs the DeepFreeze amendment.^[3]
No Freeze is permanent. An issuer that turns it on gives up the power to freeze single holders and the power to end a global freeze.^[2]
No Freeze rules out Deep Freeze. An address that has turned on No Freeze cannot turn on Deep Freeze.^[3]

Clawback

Clawback lets an issuer take trust-line tokens back from a holder. It works only under strict conditions:^[4]

It is off by default. The issuer turns it on with an AccountSet transaction.
It can only be turned on while the issuer's owner directory is completely empty. An issuer with any existing tokens cannot turn it on.
It cannot be turned on by an account that has already given up the ability to freeze trust lines.
It requires the Clawback amendment.
XRP is not a token and cannot be clawed back.

So clawback is a choice an issuer makes before it issues anything. A token that has been live for years without it cannot gain it later.

What this means for stablecoins such as RLUSD

Regulated stablecoin issuers screen their users. Ripple USD (RLUSD) is issued by Standard Custody and Trust Company and other regulated Ripple subsidiaries, and it is live on the XRP Ledger and other networks. Ripple says direct customers must meet KYC and AML requirements, with regular sanctions screening of both customers and wallets.^[5]

This is where an AML check fits in. A checker looks at the history of an XRP Ledger address. A freeze or clawback is the issuer's decision. A clean score does not bind the issuer, and a frozen trust line does not change what the score says about the past.

Check who issued the token

Anyone can issue a token with a familiar name. To confirm who runs an issuer address, look for a two-way link: the account's Domain field must match the domain that hosts its xrp-ledger.toml file. The documentation says neither link on its own should be trusted.^[6]

To view an account, xrpl.org lists public explorers, including Bithomp, XRPScan and the XRPL Explorer at livenet.xrpl.org.^[7]

Exchanges and destination tags

An exchange freeze is a separate matter from a ledger freeze, and it is not the only exchange risk. Exchanges use destination tags to know which customer to credit. A payment without the tag may need manual handling before it is credited.^[8] Always copy the tag along with the address.

Payments are also final. Ripple says it cannot stop or change transactions on the XRP Ledger, and it will never ask you to send it XRP.^[9]

A freeze on the XRP Ledger hits tokens, not XRP. If someone says your XRP is "frozen" and asks for a fee to release it, that is a scam.

What to do

Know what you hold. XRP cannot be frozen on the ledger; tokens can.
Check the issuer. Confirm the Domain and xrp-ledger.toml link before you add a trust line.
Look at the issuer's settings. No Freeze means no individual, global or deep freezes. Clawback, if on, was set before any tokens existed.
Use the destination tag every time you send to an exchange.
Check counterparties before you accept large token payments.

See our XRP AML checks page for services that cover the XRP Ledger, and the service comparison for prices.

General information, not legal or financial advice. Rules differ by country and change; check the linked sources.