TLDR
- Ripple sent 220 million XRP to a new wallet with no escrow or multi-sig setup.
- The $500 million XRP transfer is not part of Ripple’s monthly unlocks.
- Ripple is planning a $1 billion XRP treasury firm to manage reserves.
- Ripple controls 41.85 billion XRP, over 35% of the total XRP supply.
Ripple has moved a large amount of XRP in a way that has raised questions across the crypto community. The company transferred 220 million XRP—worth around $500 million—to a newly created account. This account does not have escrow or multi-signature protection. The transfer comes at a time when Ripple is working on plans to set up a $1 billion XRP treasury firm.
$500 Million XRP Sent to Unsecured Account
Ripple transferred 220 million XRP to a new account that lacks standard security features. The transfer was flagged by XRP Ledger (XRPL) validator “Vet” on social media platform X. He pointed out that the account was not placed in escrow and did not use multi-signature protection, which would typically add extra security to such a large amount.
According to data from XRP Scan, this account was created shortly before the transfer took place. Vet expressed surprise about the move, saying that such a large transfer without multi-sig was “genuinely surprising.” He also mentioned that Ripple often creates fresh accounts to manage its holdings, so the creation of the new wallet itself was not unusual.
Not Linked to Monthly Unlocks
Ripple’s monthly routine involves unlocking 1 billion XRP from escrow. This $500 million transfer, however, is not part of that activity. The firm had already unlocked the scheduled tokens earlier this month. A portion of those coins were also re-locked into escrow shortly after.
This latest transfer appears to be separate from Ripple’s regular operations. Its timing suggests a possible link to Ripple’s ongoing efforts to raise funds for a new treasury initiative. While Ripple has not officially confirmed the reason for the move, its recent actions support the idea that it could be part of the treasury plan.
XRP Treasury Firm in the Works
Ripple is working on launching a digital asset treasury (DAT) firm, according to reports from CoinGape. The company aims to raise up to $1 billion for this purpose. Ripple plans to contribute some of its XRP holdings to the treasury firm, and the transferred 220 million XRP may be part of that contribution.
The new treasury firm would hold XRP as reserve assets. Ripple currently owns about 41.85 billion XRP, which includes coins locked in escrow. This represents around 35% of the total XRP supply. The treasury project is expected to manage a portion of these holdings more strategically.
Long-Term Distribution Strategy
The validator Vet also shared his view that the treasury firm could support Ripple’s long-term distribution strategy. He stated that such a setup could help ensure XRP reaches entities that are more likely to hold the asset for extended periods. This could reduce the amount of XRP flowing directly to exchanges.
In a post on X, Vet noted, “Distribution is the name of the game.” He said the more XRP that moves into long-term holding structures, the less selling pressure the market may face. Though market players may not see immediate changes, he noted that controlled distribution is one way to support more stable usage of XRP over time.
Ripple has not yet released a detailed statement on the treasury firm or the recent transfer. However, the movement of such a large amount of XRP, especially to an unsecured account, has drawn attention and raised questions about the next steps in Ripple’s strategy.
