The XRPL's MPT (Multi-Purpose Token) standard is designed to carry real-world assets that need richer policy than a plain trustline.
An MPT carries on-issue: - a metadata blob — JSON describing the asset, issuer, terms - transfer flags — KYC-only, jurisdiction allow-list, lock-up - a prospectus hash — pointer to the full legal document
Why a metadata blob, not a free-form memo?
Because tokenised securities have legal disclosure duties. The regulator (or your court, in the worst case) needs a single canonical record of what this token is. The MPT metadata is that record.
The prospectus is the source of truth
The on-chain metadata is short. It hashes a much larger document — the prospectus — that lives off-chain (typically on IPFS or the issuer's site). The hash chain proves the issuer did not swap the prospectus after issuance.
Before buying any MPT, read the prospectus. Always.
Transfer policy enforcement
MPTs can be configured so that: - only KYC'd holders can receive, - jurisdictions can be allow- or block-listed, - transfers are paused during corporate actions (dividend cut-off), - the issuer can claw back in specific legally-defined situations.
These features make MPTs eligible for regulated distribution; they also mean the token is not bearer. Your control over it is contingent on the issuer's rules.