Coin WorldWednesday, Jul 2, 2025 4:29 am ET
1min read
On July 2, 2025, Ripple, the blockchain-based payment protocol, made a significant move by locking 400 million XRP tokens, valued at approximately $869 million, in a new escrow wallet. This action was part of a broader strategy shift aimed at stabilizing the market and enhancing the utility of XRP. Concurrently, Ripple unlocked 500 million XRP as part of its monthly release strategy, transferring this amount to its wallet through two transactions of 300 million and 200 million XRP. The 300 million XRP portion is designated to support on-demand liquidity services (ODL), exchange-traded products (ETP), and strategic partnerships.
Data confirmed by Whale Alert also revealed a failed attempt to unlock an additional 300 million XRP. Despite this setback, Ripple’s decision to lock 400 million XRP again indicates that the monthly cycle involving releasing up to 1 billion XRP is not yet complete. The re-locking of these coins aims to stabilize the circulating supply and limit price volatility. It’s noteworthy that since the end of 2017, escrow wallets were designed to consistently release 1 billion XRP each month.
Experts suggest the initial transfer of 300 million XRP is intended to fuel ODL demand by providing instant liquidity for cross-border payments. This same XRP tranche could also finance institutional investment products based on ETPs and foster new collaborations. These activities enable Ripple to manage its overall escrow portfolio while catering to external institutional needs.
This year, Ripple deviated from its traditional escrow wallet strategy by creating new escrow wallets using its available balance instead of the newly released XRP. First observed in March, this practice continued in April, May, and June. As a result, while keeping the previous coin release volume relatively stable, the company technically formed new escrow wallets through internal transfers.
According to Ripple’s latest market report, the company’s direct XRP holdings stand at 5 billion, with a substantial reserve of 38 billion XRP managed through smart contracts. The July releases following those of June indicate Ripple’s pursuit of flexible supply management. Analysts evaluate that the recent coin releases’ market impact largely depends on the speed of utilization of the unlocked volume.
Ripple’s move to lock 400 million XRP tokens is a bold strategy that reflects the company’s confidence in the future of its technology and the broader adoption of cryptocurrencies in the financial sector. This decision is part of a broader trend among major cryptocurrency players to manage their reserves more strategically, aiming to create a more stable and predictable market environment. By locking a significant portion of its XRP holdings, Ripple is positioning itself as a leader in the cryptocurrency space, committed to driving innovation and growth in the industry.
