XRP News Today: Coinbase Cuts XRP Cold Wallet Holdings by 73% Amid Industry-Wide Custody Shifts

Coinbase’s XRP holdings have undergone a significant reduction, with on-chain data showing a nearly 73% decline in the exchange’s identified cold wallet cluster since June 2025. The drop in consolidated holdings was marked by a structural breakdown of previously mapped wallets, shifting from 52 cold storage addresses holding approximately 970 million XRP in June to only 16 remaining wallets by late August, each containing roughly 16.5 million XRP. The redistribution of these reserves suggests a major shift in custody practices, with the majority of larger allocations either emptied, subdivided, or moved to sub-wallets or external accounts [1].

This development has sparked discussion among on-chain analysts about the potential implications. A reduction in exchange-held XRP can signal a tightening of circulating supply on centralized platforms, which historically has coincided with periods of increased price stability or upward momentum. Additionally, the move could reflect a strategic rebalancing of custody infrastructure, a common practice among large custodians who often split legacy cold storage into smaller operational accounts for enhanced security and regulatory compliance [1].

Notably, similar patterns were observed at other custodians such as BitGo and Bitstamp, where cold storage accounts were also fragmented into smaller working accounts. The coordinated nature of these shifts across multiple platforms suggests industry-wide operational adjustments rather than a singular incident involving Coinbase [1]. However, the scale of the reduction at Coinbase has led some to question whether this is part of a broader liquidity strategy or a response to evolving market conditions.

Despite the on-chain signals, Coinbase has not publicly commented on the changes. Analysts caution that while wallet decomposition and transfers can resemble sell activity, they do not necessarily indicate direct market selling. Instead, such movements could stem from internal redistribution, client withdrawals, or operational reallocation. This distinction is crucial for traders and market participants seeking to interpret the true nature of the shift.

With XRP trading near $2.91—a level it has previously struggled to surpass—market observers are closely monitoring whether the reduction in exchange-held supply might create a more favorable supply-demand dynamic. If the redistributed XRP remains off-exchange or locked in long-term custody, it could reduce available liquidity and potentially influence price behavior [1]. However, the short-term impact will depend on whether these moves are isolated to operational rebalancing or indicative of a larger structural shift in supply dynamics.

The lack of transparency from Coinbase and other custodians remains a point of speculation. While on-chain data offers insights, definitive conclusions require direct communication from the exchanges themselves. For now, traders are advised to continue monitoring labeled exchange addresses through on-chain explorers and public address mappings to detect further shifts in supply and custody practices [1].

Source: [1] [Coinbases XRP Holdings Shrinking Extends to 73 – Is Everything OK](https://u.today/coinbases-xrp-holdings-shrinking-extends-to-73-is-everything-ok)