What’s Ripple’s next move with its massive XRP escrow?
Ripple may start monetizing its escrowed XRP supply by selling rights to future tokens. In short, raising funds without adding supply pressure.
How are investors reacting to XRP’s price trend?
Despite a 580% spike in long-term holder spending, XRP has dropped 27%, signaling weak bid support and fading investor confidence.
No doubt, Ripple’s XRP escrow strategy has made its supply more predictable. Naturally, this helps manage market flow, but more importantly, it keeps stakeholders from being caught off guard.
On paper, this sounds like a smart way to avoid inflation. However, it also raises a key question. Is Ripple managing inflation, or does this approach show a “lack of confidence” in natural market demand? According to AMBCrypto, how this plays out could shape XRP’s next move.
CTO hints at monetizing XRP escrow before next unlock
Ripple is set to unlock another 1 billion XRP as November begins. At present, 60.1 billion XRP are in active circulation, while 35.9 billion remain locked in escrow. Technically, if Ripple maintained its monthly schedule, the remaining supply would be fully unlocked by 2028.
However, that’s where things get interesting. Typically, only 200–300 million XRP from each unlock reaches the market, while the rest is “re-escrowed.” Given this setup, Ripple’s CTO recently made a key announcement.
In a post on X, he suggested monetizing Ripple’s escrowed holdings. So far, unused tokens were locked back up, meaning Ripple couldn’t pre-sell them. But by “selling the rights” to buy XRP from future releases, Ripple could raise funds without adding liquidity to the market right away.
Simply put, the 35.9 billion XRP could be pre-sold to investors. However, the tokens would remain off-market until their release dates to control supply. Could this, then, mark Ripple’s next big step toward institutionalization?