XRP News Today: Ripple Adjusts XRP Escrow Strategy Amid Market Supply Concerns

Ripple’s escrow management strategy, designed to regulate the flow of XRP into circulation, is at a critical point. The escrow system, initiated in December 2017, locked away 55 billion XRP across multiple wallets to prevent market instability from an oversupply. Each month, 1 billion XRP is released from escrow, but Ripple typically relocks a significant portion to maintain supply control. As of July 2025, the escrow still contains 35.908 billion XRP, distributed across 14 wallets, with the remaining balance released on a predetermined schedule and subject to Ripple’s discretionary re-locking strategy.

The future of the escrow balance depends on Ripple’s usage and re-locking practices. In 2025, Ripple has been re-locking 700 million XRP each month, except for June when 670 million was returned. This is a slight reduction from the previous year, where Ripple re-locked 800 million XRP monthly from April to October 2024, except in November when only 530 million was re-locked. If Ripple continues to retain 700 million XRP monthly and utilizes only 300 million per month, the escrow balance could last approximately 10 more years. However, if Ripple increases its usage to 400 million XRP per month starting in January 2026, the remaining escrow would be depleted in roughly 7.5 years. A more aggressive approach, increasing monthly use by 100 million XRP each year, could reduce the timeline to just six years. If Ripple ceases re-locking entirely and utilizes the full 1 billion monthly, the depletion would occur much sooner.

Ripple appears to be modifying not only the re-locking amounts but also the release schedule itself. Traditionally, the 1 billion XRP is unlocked on the first day of each month. However, since March 2025, Ripple has begun staggering the release. For example, in July 2025, Ripple unlocked 500 million XRP on July 1 and another 500 million on July 4. This new phased-release method aligns with a broader shift in how Ripple allocates unlocked XRP. In July, of the 1 billion XRP released, 300 million was used for business activities such as Ripple Payments, exchange-traded products, and strategic partnerships, while the rest was returned to escrow.

Ripple’s evolving escrow practices reflect an effort to balance market supply while supporting ongoing operational needs. While current trends point to a potential depletion within a decade, any further changes in release frequency or retained amounts could significantly impact how long the escrow reserves will last. The company’s strategic adjustments indicate a proactive approach to managing the XRP supply, ensuring that the cryptocurrency remains stable and supports Ripple’s business activities.