XRP News Today: Ripple Escrowed XRP May Be Controlled By Global Financial Institutions

Prominent crypto advocate Edo Farina has sparked intense discussion within the XRP community by suggesting that the Bank for International Settlements (BIS), the International Monetary Fund (IMF), and the U.S. Treasury may already control a substantial portion of Ripple’s escrowed XRP. According to Farina, these acquisitions were likely secured through confidential agreements dating as far back as 2019. While there is no public evidence to confirm this, the theory has ignited speculation about Ripple’s potential ties to powerful financial institutions.

Farina begins by clarifying a common misconception: there is no law prohibiting Ripple from selling its escrowed XRP. The escrow system, introduced in 2017, was designed to bring transparency and predictability to XRP’s circulating supply by locking up 55 billion XRP and releasing 1 billion each month. However, this is a voluntary mechanism, not a legal obligation. Ripple retains full authority to sell, allocate, or enter into private agreements involving this XRP, provided transactions are conducted following securities laws and other applicable regulations.

The XRP Ledger is fully transparent, allowing anyone to track the total supply, account balances, and monthly escrow releases. However, what the public cannot see is the nature of any behind-the-scenes deals. If Ripple entered into private agreements with institutions like the BIS, IMF, or U.S. Treasury, especially under non-disclosure agreements, the actual beneficiaries of the escrowed XRP may remain unknown. This creates a gap between what is verifiable on-chain and what may be unfolding in closed-door arrangements.

Farina further speculates that these confidential acquisitions may have occurred around 2019, a time when Ripple was strengthening relationships with global financial authorities. Notably, this is also the period leading up to the U.S. Securities and Exchange Commission (SEC)’s lawsuit against Ripple in December 2020. Farina hints that the lawsuit may have coincided with, or even helped divert attention from, the discreet accumulation of XRP by major institutions. While speculative, the theory adds a new layer to an already complex legal saga.

Ripple’s extensive involvement in the international financial system gives Farina’s theory some contextual weight. The company has worked with over 40 central banks and launched pilot programs for central bank digital currencies (CBDCs) in various nations. It is also a founding member of the Digital Pound Foundation and has collaborated with global regulators. These relationships suggest that Ripple’s strategic assets, especially its escrowed XRP, may be more deeply embedded in the future of finance than many realize.

Despite the transparency of the XRP Ledger, the true ownership of Ripple’s escrowed XRP remains uncertain. Farina’s assertion that global financial bodies may already own a significant portion is impossible to confirm, but it raises important questions. In a financial system increasingly shaped by private-public collaboration, what happens off-chain could be just as consequential as what is recorded on it.

Edo Farina’s claims are speculative but provocative, adding fuel to ongoing debates about Ripple’s role in the evolving global monetary system. Whether or not his suspicions are eventually proven, they underscore the mystery surrounding the true fate of Ripple’s escrowed XRP.