XRP Escrow Holdings Not Under Ripple’s Direct Control

XRP remains one of the most scrutinized cryptocurrencies in the blockchain world, and a recent clarification by RippleX’s senior software engineer further highlights the nuanced relationship between Ripple and XRP’s escrowed holdings.

Mayukha Vadari, a key engineering voice at RippleX, recently clarified that while Ripple owns a significant stake in XRP, specifically 38 billion tokens, these assets are not actually in Ripple’s direct possession. Instead, the XRP Ledger (XRPL) is structured in such a way that it acts as the temporary custodian through automated escrow contracts.

This means that the Ripple company cannot freely access these XRP tokens at will. Vadari emphasized that “technically (and legally), the escrow funds are being held by the network itself, not Ripple.” This setup serves as a safeguard, ensuring transparency and minimizing concerns about potential market manipulation through sudden large sales of XRP tokens.

As of now, those billions of XRP tokens remain locked and governed by predefined conditions coded into XRPL’s smart contract-based escrow feature. These terms control when and how much XRP is released, offering predictability to the market and accountability from Ripple.

This clarification from Vadari echoes a stance previously articulated by David Schwartz, Ripple’s Chief Technology Officer. He had earlier commented that having tokens in escrow essentially means they are no longer under the influence or discretion of the entity that initiated the escrow—emphasizing the autonomy of the protocol in managing these locked tokens.

Earlier in 2025, Ripple CEO Brad Garlinghouse drew attention by stating that the company owns over $100 billion worth of XRP tokens. However, the recent statements by Ripple engineers reinforce the distinction between ownership and control. Despite the large volume attributed to Ripple, the company cannot deploy those 38 billion tokens until their scheduled release from escrow occurs.

Supporting this point, past quarterly markets reports released by the company—though they are now discontinued—provided detailed disclosures separating XRP directly held by Ripple from those in escrow. According to the last report, Ripple’s available liquidity stood at approximately 4.9 billion XRP, while 38 billion remained securely locked within XRPL’s escrow system.

This mechanism was originally put into place years ago when Ripple opted to lock 55 billion XRP into escrow smart contracts. The move aimed to alleviate investor concerns about a sudden influx of XRP into the market, which could potentially depress value and disrupt ecosystem trust.

Crypto assets like XRP depend heavily on user trust, especially when centralized entities maintain large token reserves. By deferring control to the XRPL’s built-in logic layers, Ripple reinforces decentralization practices and ensures the broader market is not subject to unilateral actions from any single corporate entity.

This level of transparency has ongoing implications for regulatory scrutiny and investor sentiment. It also underscores the XRP Ledger’s advanced technical architecture, where protocols—not people—govern vital components like escrow management. Such design choices continue to be foundational in establishing XRP’s credibility within the crypto sphere.

As XRP adoption rises and institutional interest mounts, Ripple’s automated escrow strategy serves not just as a financial tool but also a trust-building mechanism. The network’s ability to independently safeguard locked assets may well shape best practices for asset management among other blockchain initiatives seeking public and enterprise adoption.

Ultimately, this approach reflects Ripple’s dual commitment to compliance and innovation—demonstrating that owning digital assets doesn’t always translate to immediate power over them, especially within permissionless and encoded environments like the XRP Ledger.

Related: Expert Advice: Sell XRP If You’re Confused

For more insights, visit Mayukha Vadari’s original post on X.