Ripple Explores Monetizing 35.9B XRP Held in Escrow
Ripple is reportedly exploring ways to monetize its 35.9 billion XRP held in escrow, signaling a potential shift in how the company manages its locked supply. The move comes as XRP struggles to regain market momentum amid declining investor confidence and increased long-term holder activity.
Ripple’s Escrow System and New Proposal
Ripple’s escrow mechanism has long been designed to control XRP’s circulating supply and reduce volatility. Around 60.1 billion XRP are currently in circulation, while another 35.9 billion remain locked in escrow, scheduled for gradual release through 2028.
Under normal conditions, only 200–300 million XRP from each monthly unlock enters the market, with the remainder re-escrowed. However, Ripple’s CTO recently suggested a new approach, monetizing the escrow by selling the rights to purchase XRP from future releases.
Ripple could sell the right to receive the tokens released from escrow or even sell the accounts the escrows complete into. But the XRP still can’t circulate until their release dates.
— David ‘JoelKatz’ Schwartz (@JoelKatz) October 27, 2025
This would allow Ripple to raise capital without immediately increasing circulating supply. While the tokens would remain locked until their respective unlock dates, such a mechanism could enable Ripple to generate funds upfront, similar to pre-sold treasury arrangements.
Investor Reactions and Market Sentiment
Despite the strategy’s potential to improve liquidity management, market sentiment remains cautious. XRP’s price has dropped 27% in recent weeks, even as long-term holders increased their spending by over 580%. This divergence suggests fading confidence among investors and weaker bid support.
Data from Glassnode shows that spent volume jumped from $38 million to $260 million per day (7-day SMA), indicating that early holders are realizing profits following XRP’s 270% rally since late 2024. The sell pressure has weighed on price recovery, keeping XRP among the underperforming large-cap assets this quarter.
Outlook for Ripple and XRP
Analysts note that Ripple’s escrow monetization plan could serve as a financial hedge amid uncertain market demand. However, its success depends on whether institutional buyers see long-term value in pre-purchasing locked XRP supply.
For now, the approach reflects Ripple’s broader challenge, maintaining liquidity and investor confidence while managing one of the largest locked asset pools in the crypto market.
