Ripple CTO David Schwartz has revealed a major shift in how the company’s XRP escrow holdings could impact the market. According to Schwartz, while XRP locked in escrow cannot be circulated until its scheduled release dates, Ripple could sell the rights to receive those tokens in advance.
Additionally, Ripple could transfer the accounts where the escrowed tokens are released. This opens the door to new liquidity options for XRP without violating the release structure of the tokens.
The 35 billion XRP currently locked in escrow across thousands of contracts has long been seen as inaccessible. However, Schwartz’s statement suggests that Ripple can potentially monetize the rights to those tokens. This could introduce new market dynamics, especially in terms of how XRP is valued and traded.
With the right to access these tokens potentially tradable, XRP’s total supply and liquidity could be viewed in a different light.
Ripple could sell the right to receive the tokens released from escrow or even sell the accounts the escrows complete into. But the XRP still can't circulate until their release dates.
— David 'JoelKatz' Schwartz (@JoelKatz) October 27, 2025
New Implications for XRP’s Market Cap and Supply
Schwartz’s comments shed light on the fact that XRP’s market cap could be affected by the ability to sell rights to escrowed tokens. While XRP’s current market cap excludes the escrowed tokens, Bitcoin’s market cap includes all mined tokens, regardless of their status.
The possibility of selling the rights to escrowed tokens adds an entirely new dimension to XRP’s supply. This could lead to a reevaluation of XRP’s true market value, potentially influencing investor strategies.
XRP Escrowed Tokens Could Be More Liquid Than Thought
Schwartz’s clarification challenges the traditional view of XRP’s escrowed tokens. While these tokens cannot be circulated until their release dates, the rights to claim them could be sold or transferred. This introduces greater flexibility for Ripple and its investors, making XRP’s locked assets potentially more accessible.
The ability to transfer or sell these rights opens up new opportunities for market participants to engage with XRP’s liquidity without waiting for the scheduled releases.
Whale Alert Highlights Increased Interest in XRP Escrow Movements
Whale Alert recently reported that 4,000,000 XRP, worth approximately $11.2 million, was locked in escrow. In addition, a transfer of 15,000,000 XRP, valued at $42.1 million, was sent to Bitstamp.
These movements, which have caught the eye of the XRP community, suggest increased interest in XRP’s on-chain activities and may signal shifts in liquidity and institutional positioning.