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Key Notes
- Ripple Labs locked 700 million XRP in escrow to manage the coin’s circulating supply.
- The technology company holds billions of XRP outside escrow, with plans to reduce sales.
- Ripple and US SEC case is now over with the firm billed to pay $50 million.
Blockchain payments firm Ripple Labs Inc has locked 700 million XRP
XRP
$2.12
24h volatility:
1.8%
Market cap:
$123.61 B
Vol. 24h:
$3.32 B
in escrow as part of its continued strategy to manage the cryptocurrency’s supply. Notably, this occurred weeks after company CEO Brad Garlinghouse disclosed the resolution of its lawsuit with the US Securities and Exchange Commission (SEC).
Ripple Escrow Strategy and Supply Control
It is worth noting that Ripple Labs operates a structured escrow program developed to regulate and manage the availability of XRP in the market. For context, Ripple releases 1 billion XRP each month, which is used for institutional sales, operational expenses, and liquidity support.
However, previous trends show that many of these tokens are often returned to escrow. The goal is to maintain a stable supply and avoid excessive market fluctuations.
Per data from Whale Alert, Ripple Labs sent 700 million XRP back into escrow last month without executing the scheduled 1 billion token release. According to digital asset analyst Leonidas Hadjiloizou, this action was made possible due to surplus XRP in the company’s accounts.
🔒 🔒 🔒 🔒 🔒 🔒 🔒 🔒 🔒 🔒 370,000,000 #XRP (778,259,699 USD) locked in escrow at #Ripplehttps://t.co/Rk079yzgNf
— Whale Alert (@whale_alert) April 2, 2025
Furthermore, Hadjiloizou disclosed that Ripple Labs continues to hold several billion XRP outside of escrow, giving the company strategic control over the token’s availability. Notably, the decision to lock funds rather than release them immediately could have implications for the XRP market.
Recent updates highlight that Ripple Labs CEO Brad Garlinghouse confirmed plans to scale back its XRP sales. Many analysts believe that such a move could ease selling pressure and potentially create a more favorable pricing environment for the coin.
Still, Ripple’s control over XRP remains a major discourse in the crypto industry. The company still holds more than 40% of the total XRP supply, making its decisions crucial to the coin’s overall outlook.
Investors and analysts closely monitor Ripple’s strategies to gauge the potential impact on price movements. As of writing, XRP was changing hands for $2.121, down by 2.62% in 24 hours.
SEC Case Resolution and Ripple’s Legal Stand
Notably, the latest escrow move comes after a major shift in the legal battle between Ripple Labs and the SEC.
In 2023, a US court ruled that XRP sales on public exchanges were not securities, though institutional sales required compliance. As Coinspeaker reported, the security agency filed an appeal in January 2025. They argued that Ripple’s promotions created profit expectations, making retail sales an unregistered securities offering under the Howey Test.
With President Donald Trump’s pro-crypto shift, the US SEC dismissed the appeal and the case entirely. Drawing on this, Ripple Labs dropped its cross-appeal and confirmed through its Chief Legal Officer Stuart Alderoty that the firm would pay $50 million of the previously imposed $125 million fine for the institutional XRP sales violation.
With the legal dispute finally over, reports say Ripple Labs Inc. is working to strengthen its market position and follow regulations. For many experts and crypto influencers, the case has formed a precedent in the market, raising concerns and debates on digital asset rules.
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Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.
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