XRP Escrow Locked: 35B Tokens, Rights Tradeable
Ripple CTO David Schwartz has confirmed that roughly 35 billion XRP escrow tokens (around 35% of the total supply) remain time-locked in escrow under 14,180 contracts, with scheduled monthly releases unchanged. However, Ripple can pre-sell or transfer the legal rights to claim these XRP escrow tokens without triggering a token release, keeping them off the circulating supply while unlocking their economic value through rights trading. Community concerns over potential dilution prompted clarification, with Ripple also routinely re-locking about 70% of released tokens to manage liquidity and mitigate supply shocks. This flexible approach to XRP escrow and supply control may prompt traders to reassess XRP supply metrics, market-cap comparisons versus BTC, and valuation ahead of possible XRP ETF developments.
Neutral
Since the 35B XRP escrow tokens remain locked and off the circulating supply, there is no immediate dilution to drive prices down. The ability to trade legal rights may enhance liquidity and institutional interest but does not alter token issuance. In the short term, traders can expect stable supply dynamics; in the long term, flexible rights trading could support deeper markets and ETF prospects, balancing out any volatility and leading to a neutral price impact.