Clawback, freeze and trust lines on XRPL: what they mean for metal tokens
Last updated October 30, 2026
Short version: On the XRP Ledger, a gold, silver or platinum token is an IOU from an issuer, and you hold it through a trust line. The issuer's account settings decide whether it can freeze your tokens or claw them back. ReserveWatch reads those settings straight from the ledger for every token it tracks. This is education, not investment advice, and these settings say nothing about whether metal sits in a vault.
1. Trust lines: how you hold a token
XRP is the ledger's own coin. Every other token — including metal tokens — is issued by a specific account (the issuer). Before you can hold one, your account must open a trust line to that issuer. Think of it as saying, "I agree to hold up to this many of your tokens."
- Each trust line ties one holder to one issuer for one currency code. Two tokens with the same code (say, "GOLD") from different issuers are completely different tokens.
- The issuer's total supply is the sum of all its trust-line balances. ReserveWatch subtracts known treasury wallets to get circulating supply.
- Opening a trust line costs a small XRP reserve that is locked while the line exists.
- Some issuers turn on RequireAuth, which means they must approve each trust line before it can hold tokens.
Why it matters: because the code alone does not identify a token, always check the issuer address. That is why ReserveWatch soft-labels tokens it cannot match to the project they reference as Unverified listing.
2. Freeze: stopping tokens from moving
By default, an XRPL issuer can freeze its tokens. There are three related settings:
- Individual freeze. The issuer freezes one holder's trust line. That holder can still send the tokens back to the issuer, but generally cannot send them to anyone else. Issuers often use this for legal or compliance holds.
- Global Freeze. The issuer freezes all of its trust lines at once. The token stops moving between holders; in practice, holders can only send it back to the issuer. ReserveWatch marks this CRITICAL.
- NoFreeze. An issuer can give up its freeze power forever by setting NoFreeze. Once set, it cannot be undone, and the issuer can no longer freeze lines or turn on Global Freeze. Many regulated issuers keep freeze power on purpose, so ReserveWatch treats "can freeze" as normal (OK) and shows it for context.
Some ledger versions also support a stricter deep freeze on a single line, which also stops that holder from receiving the token.
3. Clawback: taking tokens back
Clawback lets an issuer pull tokens out of a holder's trust line and back to itself. On the XRP Ledger the issuer has to switch this on with the allowTrustLineClawback account setting, and the ledger only allows that before the issuer has any trust lines or offers. After it is on, it cannot be switched off, and it cannot be combined with NoFreeze. So clawback is a choice an issuer makes at launch, and it stays for the life of that issuer account.
- Why issuers use it: to meet court orders, fix mistakes, or follow rules for regulated assets.
- What it means for holders: you do not have final control of your balance — the issuer can reduce it without your signature.
- How ReserveWatch labels it: WARN, not CRITICAL, because it is a legitimate design choice for some regulated issuers. It is still something you should know before relying on a token.
4. What ReserveWatch sees on-ledger right now
These flags are read directly from each issuer's XRPL account (as of 2026-10-30T20:21:31.269Z). We do not judge why an issuer chose them.
- Clawback enabled: Assetiko XAUa, Assetiko XAGa, Assetiko XPTa.
- Global Freeze on: BPG XAU (GateHub).
- NoFreeze set (freeze power given up): none of the tracked tokens.
- Some individually frozen trust lines: Unverified "GOLD" (issuer rMELD…), Assetiko XAUa, Assetiko XAGa, Assetiko XPTa.
| Token | Clawback | NoFreeze | Global Freeze | Frozen lines | RequireAuth |
|---|---|---|---|---|---|
| Meld Gold GLD | off | no (can freeze) | off | 0 | no |
| Meld Gold SLV | off | no (can freeze) | off | 0 | no |
| Unverified "GOLD" (issuer rMELD…) | off | no (can freeze) | off | 3 | no |
| Assetiko XAUa | on | no (can freeze) | off | 2 | no |
| Assetiko XAGa | on | no (can freeze) | off | 2 | no |
| Assetiko XPTa | on | no (can freeze) | off | 2 | no |
| BPG XAU (GateHub) | off | no (can freeze) | on | 0 | no |
Live values for each token are on its token page under "Issuer control flags". A frozen-line count only says lines exist that the issuer froze; it does not say why.
5. Questions to ask before you rely on a metal token
- Is the issuer address the one the project publishes (for example, in its
xrp-ledger.tomlfile)? - Can the issuer freeze or claw back my tokens, and does the issuer explain when it would?
- Is Global Freeze on right now? If so, the token cannot move between holders.
- Is there enough liquidity to exit, and does the on-ledger price track spot? See the methodology.
- Remember: none of these settings prove metal is in a vault. On-ledger data is not proof of reserves.
How to check it yourself
Open the issuer address on a public explorer (each ReserveWatch token page links to XRPScan) and look at the account flags, or query the ledger's account_info method. ReserveWatch shows the same flags on every token page and in the free JSON API.
Related: How the health checks work · Weekly ledger snapshots · All guides · Disclaimer