Coinbase Cuts 73% of XRP Cold Storage Amid Custodial Shift
Coinbase has reduced its XRP cold storage holdings by approximately 73% over three months, dropping from about 970 million XRP across 52 cold wallets in June to a much smaller set of 16 lower-tier addresses by late August. Blockchain analytics show the exchange emptied several large wallets, split others into smaller operational addresses, and moved some funds off-platform. This sharp decrease in XRP cold storage indicates a deliberate custodial rebalancing rather than routine transfers.
Similar fragmentation is visible at other custodians like BitGo and Bitstamp, but Coinbase’s reduction is the most pronounced among major U.S.-linked platforms. The timing coincides with XRP trading near the $2.91 resistance level. Lower exchange reserves can tighten available supply and support price if demand holds. Traders should monitor on-chain wallet movements, exchange order-book depth, and withdrawal patterns for supply-side signals. Official custody updates may shed more light on this custody shift.
Bullish
A 73% reduction in Coinbase’s XRP cold storage signals a significant withdrawal of supply from exchange reserves. Historically, lower exchange reserves have tightened available supply and often preceded price rallies in XRP and other major tokens. In the short term, this move may reduce sell-side pressure and support upward price momentum. Over the longer term, a clear custodial restructure can boost trader confidence in custody security and may attract additional buy-side interest if demand remains steady or increases.