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TrustSet transaction now supports Deep Freeze!

26 days ago by Manthan Dave

Palisade enhances institutional asset control on the XRP Ledger through our latest Deep Freeze APIs. These APIs allow token issuers to implement stronger compliance controls by freezing all issued assets at the account level, providing enhanced regulatory compliance capabilities beyond traditional individual and global freezes.

Use-cases

  1. Regulatory Compliance & Enforcement - Deep Freeze enables institutions to align with evolving regulatory frameworks by preventing all asset transfers when required, ensuring on-ledger transparency while maintaining compliance.

  2. Fraud & Security Risk Mitigation - If an account is compromised or associated with fraudulent activity, issuers can quickly restrict all asset movement, preventing unauthorized transactions and safeguarding tokenized assets.

  3. Sanctions & Blacklisted Accounts - Financial institutions can swiftly implement sanctions compliance by blocking all token transfers from specific accounts while maintaining full on-chain traceability.

  4. Institutional Stablecoin Management - Stablecoin issuers can meet regulatory requirements for freezing accounts involved in sanctions or compliance violations, making XRPL more attractive to regulated institutional issuers.

Security considerations

Transactions initiated using Deep Freeze APIs are subject to the same policy engine rules as other TrustSet operations. Deep Freeze provides stronger controls than regular Individual Freeze by preventing all outgoing transactions from the frozen account, not just limiting trust line operations.

Important security notes:

  1. Deep Freeze applies only to issued tokens, never to XRP itself
  2. Unlike Individual Freeze, Deep Freeze blocks all asset transfers from the account, providing comprehensive asset control
  3. Deep Freeze can be both set and cleared through the API, allowing for temporary compliance holds
  4. The frozen account can still receive direct payments from the issuer

Limitations

Deep Freeze Scope

Summary

Deep Freeze affects all tokens issued by your account to the specified trust line. It provides account-level freezing rather than individual trust line freezing.

Key Differences from Regular Freeze

  • Individual Freeze: Only prevents further transactions on a specific trust line
  • Deep Freeze: Prevents all outgoing transactions and asset transfers from the account
  • Scope: Deep Freeze provides comprehensive asset control at the account level

API Usage

Use the SET_DEEP_FREEZE flag to enable Deep Freeze on a trust line.
Use the UNSET_DEEP_FREEZE flag to disable Deep Freeze on a trust line.

References