XRP News Today: XRP's Institutional Shift: Coinbase's Strategic Move Rattles Crypto Market

Coinbase has significantly reduced its XRP reserves, raising questions about the implications for the broader cryptocurrency market. According to blockchain tracking data, the exchange’s visible XRP holdings have plummeted from roughly 970 million in June 2025 to approximately 165 million by September 2025—an 83% drop over just three months. This decline is attributed to cold-wallet consolidations and reallocation into institutional channels and liquidity corridors, as reported by multiple on-chain analytics platforms [2].

Coinbase's XRP reserves have fallen from 52 cold storage addresses in June to just 10 by September, with each address holding roughly 16.5 million XRP [2]. This consolidation suggests a strategic redistribution of the asset rather than random retail withdrawals. Analysts speculate that the shift aligns with Coinbase's integration of its Prime platform with BlackRock’s Aladdin system, which enables institutional clients to trade and manage crypto assets, including XRP [1]. The partnership marks a pivotal moment in legitimizing XRP in traditional finance and could drive increased market liquidity.

The drop in reserves has sparked speculation about potential market manipulation, particularly on social media platforms like X, where some users allege that Coinbase’s sell-offs were timed to suppress XRP’s price. An account known as Stern Drew claimed that nearly 40% of the outflows were routed through over-the-counter (OTC) desks tied to New York institutions and that most sales occurred during low-liquidity periods [3]. However, pro-XRP lawyer Bill Morgan has dismissed these claims, arguing that XRP’s price behavior has historically mirrored broader market trends, even during periods when Coinbase had no influence over the asset [3].

The reallocation of XRP into institutional custody has broader implications for market dynamics. Smaller exchanges and startups face the dual challenge of competing with institutional liquidity and navigating regulatory scrutiny. While increased institutional participation could stabilize price volatility in the long term, it also raises concerns about concentrated holdings and the potential for sharp price swings. For example, the anticipated launch of XRP ETFs could attract more institutional capital, but the risk of manipulation remains, particularly in the absence of stringent safeguards [1].

For XRP itself, the price has remained within a defined range of $2.8 to $2.9 over the past seven days. Despite losing the $3 support level in late August, the token has held above $2.8 since then [3]. On-chain data suggests that whale activity—such as the accumulation of 340 million XRP over two weeks—could signal a potential rebound. Some analysts predict that if XRP breaks above the $3.10 resistance level, it could see a parabolic rally toward $4.50 [3].

The market is also looking ahead to Ripple’s Swell 2025 event in New York, where BlackRock’s involvement has heightened expectations for regulatory clarity and potential ETF developments. With BlackRock’s Digital Asset Director, Maxwell Stein, confirmed to attend, investors are speculating that the event could lead to key announcements or collaborations that further integrate XRP into institutional finance [4]. The broader crypto ecosystem remains closely watching these developments, as they could influence the token’s future trajectory in a rapidly evolving market.

Source:

[1] What Does Coinbase's Declining XRP Reserve Mean for ... (https://www.onesafe.io/blog/coinbase-xrp-reserves-plunge-blackrock-impact)

[2] Coinbase's Visible XRP Reserves Drop 83% to 165 Million (https://www.bitget.com/news/detail/12560604952213)

[3] Pro-XRP Lawyer Says Claims Of Coinbase Manipulating ... (https://www.mitrade.com/insights/news/live-news/article-3-1102380-20250908)

[4] Coinbase's XRP Sell-Offs Fuel Manipulation Speculation (https://www.fxleaders.com/news/2025/09/07/coinbases-xrp-sell-offs-fuel-manipulation-speculation/)