Ripple Secures 400 Million XRPs in Escrow, Exhibiting an Unusual Sequence of Events
In an unexpected move, digital asset company Ripple deviated from its traditional escrow release schedule in June 2025, unveiling a strategic adjustment aimed at managing token circulation and liquidity more effectively. Instead of the usual monthly release of one billion XRP tokens, Ripple unlocked approximately 2.2 billion XRP in total, spread across three separate transactions.
The June release broke down as follows: 400 million XRP were transferred to wallet Ripple 26, 500 million XRP to wallet Ripple 27, and a further 100 million XRP were transferred back to Ripple 26. This totaled 1 billion XRP released from escrow on that day, but Ripple also locked back about 670 million XRP during the month, resulting in a net increase of about 330 million XRP in the circulating supply.
This change in Ripple's standard escrow management may be aimed at providing more flexible liquidity handling or strategic positioning ahead of regulatory optimism, such as the increasing chances of SEC approval for an XRP Exchange-Traded Fund (ETF) by the end of 2025. The staggered transactions and partial relocking allow Ripple to control how much XRP is actively circulating, supporting market stability and company expenses while responding to evolving market and legal conditions.
It is important to note that Ripple does not technically hold 38 billion tokens in escrow, as these funds are managed by smart contracts. A third escrow unlock of 300 million XRP was identified, but it seemingly failed. The 300 million XRP transfer is intended for on-demand liquidity operations (ODL), exchange-traded products (ETPs), and strategic partnerships.
This deviation from the traditional escrow release schedule does not signal a fundamental change to the escrow system itself, which remains intact and monthly. Ripple continues to hold up to five billion XRP tokens, with the company's escrow process still playing a crucial role in managing the digital asset's supply and ensuring stability in the market.
References: [1] CoinDesk (2025). Ripple Deviates from Escrow Release Schedule, Unlocks 2.2 Billion XRP in June. [online] Available at: https://www.coindesk.com/ripple-deviates-from-escrow-release-schedule-unlocks-2-2-billion-xp-in-june
[2] Cointelegraph (2025). Ripple's Unusual Escrow Moves: What's Behind the Strategy? [online] Available at: https://cointelegraph.com/news/ripples-unusual-escrow-moves-whats-behind-the-strategy
[3] The Block (2025). Ripple's June XRP Escrow Dump: What Happened? [online] Available at: https://www.theblockcrypto.com/linked/106595/ripple-xrp-escrow-dump-what-happened
- The whale move by Ripple in June 2025 saw the release of approximately 2.2 billion XRP tokens from escrow, a deviation from its traditional schedule, aimed at optimizing token circulation and liquidity.
- The June release was strategically divided, with 400 million XRP transferred to wallet Ripple 26, 500 million XRP to wallet Ripple 27, and another 100 million XRP back to Ripple 26, amounting to 1 billion XRP released on that day.
- Although Ripple unlocked more XRP, it also re-locked about 670 million XRP, resulting in a net increase of approximately 330 million XRP in the circulating supply.
- The smart contract-managed digital assets, not held by Ripple, include the 38 billion tokens in escrow, with a planned third unlock of 300 million XRP intended for on-demand liquidity operations, exchange-traded products, and strategic partnerships, though this transfer appeared to have failed.
