XRP News Today: Ripple's Escrow Strategy Sparks Debate as It Bridges Traditional and Crypto Markets

Ripple has launched Ripple Prime, a digital asset spot prime brokerage for U.S. institutional clients, marking a significant expansion into traditional financial services. The platform enables over-the-counter (OTC) spot trading for major cryptocurrencies, including Ripple's native XRP and its stablecoin RLUSD, while integrating derivatives, swaps, and cross-margin capabilities. This move follows Ripple's acquisition of Hidden Road, a multi-asset prime brokerage firm, which has been rebranded under the Ripple Prime umbrella. The service aims to bridge traditional and crypto markets, allowing institutions to manage portfolios across forex, crypto, derivatives, and fixed income under a unified infrastructure.

The launch coincides with Ripple's routine release of 1 billion XRP (valued at ~$2.5 billion) from escrow on November 1. While only 200–300 million XRP typically enter circulation, with the remainder re-locked, the release has drawn attention amid XRP's recent price volatility, according to an escrow unlock analysis. Analysts suggest the move is part of Ripple's long-standing liquidity management strategy, introduced in 2017 to stabilize token supply. However, traders are monitoring re-locks, as a lower re-lock percentage could signal increased distribution or funding activity.

XRP's price has fluctuated between $2.30 and $2.68 in October, buoyed by institutional adoption and optimism around Ripple's expansion, according to BeinCrypto. The token recently dropped 5% to $2.40 amid broader crypto market weakness, but some analysts argue that the approval of spot XRP ETFs could reignite bullish momentum. Technically, XRP is testing key support and resistance levels, with a break above $2.72 potentially opening the door to a $3.25 target. Meanwhile, institutional flows, including a $115 million XRP-focused vehicle and corporate treasury acquisitions, have fueled comparisons to the 2017 bull cycle.

Ripple's escrow system has also sparked debate over XRP's market cap calculations. Critics argue that 35 billion XRP remain locked in escrow, distorting effective supply metrics compared to Bitcoin's lost or dormant coins, as noted in the BeinCrypto analysis. Ripple's former CTO, David Schwartz, clarified that the company could sell rights to future escrow releases, emphasizing transparency in liquidity management, a point also covered by BeinCrypto.

The new Ripple Prime platform is part of a broader institutional push. Alongside Ripple Payments and Ripple Custody, it positions XRP and RLUSD at the core of a financial stack designed for institutional liquidity and cross-border transactions, tradeable like stocks. The stablecoin RLUSD has surpassed $1 billion in market capitalization, further solidifying Ripple's role in the institutional crypto ecosystem, according to TradingView.

As XRP navigates regulatory and market dynamics, its performance will hinge on institutional adoption, escrow management, and the potential launch of spot ETFs. With Ripple's ecosystem expanding into prime brokerage and tokenization, the company is positioning itself as a key player in the convergence of traditional finance and digital assets.