XRP Distribution Unlocked: Ripple’s Escrowed Tokens Face Selling Restrictions

Ripple's vault strategy hits regulatory walls—locked XRP reserves face unprecedented selling constraints that reshape market dynamics.

Escrow Accountability

The blockchain giant's carefully structured distribution model now operates under tightened controls. Those billion-token escrow releases face stricter oversight than a Wall Street compliance department during audit season.

Market Mechanics Shift

Trading floors brace for reduced sell pressure as Ripple's hands get tied. The company's treasury management just got more complicated than explaining decentralized finance to traditional bankers.

Tokenomics Transformation

XRP's circulating supply calculus changes overnight. Suddenly those quarterly unlocks look more like theoretical numbers than liquid assets—proving once again that in crypto, even locked doors have locked doors.

TLDR

• Ripple cannot freely sell its escrowed XRP tokens due to specific restrictions in place.
• Approximately 40% of XRP’s total supply is held under escrow, limiting its market availability.
• XRP’s maximum supply is 100 billion tokens, with around 59.24 billion circulating in the market.
• Ripple releases one billion XRP monthly from escrow but returns most of it back to the lock.
• Around 10 million XRP have been burned through transaction fees, reducing the supply.

XRP Distribution Revealed: Ripple Can’t Freely Sell Escrowed Tokens. A recent graphic by crypto researcher SMQKE sheds light on the distribution of XRP, revealing important details about Ripple’s holdings. The graphic, attributed to SBI Group, emphasizes that Ripple is not free to sell off its escrowed tokens. The slide provides insight into the structure of XRP’s maximum supply, its circulation, and how Ripple’s escrow works.

XRP’s Maximum Supply and Circulating Tokens

XRP’s total maximum supply stands at 100 billion tokens. Currently, about 59.24 billion XRP are circulating in the market. These circulating tokens contribute to the market’s valuation, which is approximately 28 trillion Japanese yen. The tokens in circulation represent the active trading portion of XRP.

Around 10 million XRP have been burned, primarily through transaction fees. This burning process reduces the overall supply and increases the scarcity of XRP. The reduction in supply is important for the token’s long-term value and market perception.

Distribution of XRP.😶‍🌫️

“Ripple is NOT FREE TO SELL OFF ESCROW.”✅

Documented.📝👇 pic.twitter.com/pxaBd2BpUB

— SMQKE (@SMQKEDQG) September 21, 2025

Ripple’s Non-Circulating Holdings and Escrow Restrictions

Ripple’s non-circulating XRP holdings are separated into two categories. The company directly holds about 4.85 billion XRP that are not in circulation. Additionally, about 35.9 billion XRP tokens are held under escrow.

As of July 2025, nearly 40% of XRP’s total supply is locked in escrow. The terms of these escrow arrangements prevent Ripple from freely selling these tokens. The escrowed tokens cannot be accessed until specific conditions are met.

The escrow system plays a critical role in maintaining the predictability of XRP’s supply. Since 2017, Ripple has been releasing one billion XRP from escrow monthly. However, Ripple returns most of these released tokens, with only a small portion used for operations.

This structured release of XRP ensures stability in the market by reducing the risk of large-scale sales. Michel Blanc, a prominent commentator, describes this approach as a strength for XRP. He argues that this system reinforces long-term scarcity, which benefits investors.