- A crypto personality and AI founder speculates that Ripple may have already committed a huge chunk of the XRP supply held in escrow to ETF issuers.
- His theory ties into a Ripple top executive’s hint that the company can sell its rights to receive XRP tokens released from escrow to another party.
It’s already happening. A software engineer and AI (artificial intelligence) startup founder recently raised the possibility of what Ripple CTO David Schwartz hinted at earlier: Ripple has already begun selling its XRP in escrow, or at least has committed its delivery to institutions, particularly exchange-traded fund (ETF) issuers.
Ripple’s Advanced Selling of XRP in Escrow to ETF Issuers
The pseudonymous Vincent Van Code, a software engineer with a considerable social media following, recently reminded people that ETF fund managers can’t buy XRP directly from Ripple. This constraint stems from the previous ruling in the Securities and Exchange Commission (SEC) case against Ripple.
In 2023, Judge Analisa Torres of the Southern District of New York ruled that XRP, in and of itself, is not a security, as it does not qualify as such under the Howey Test. However, Ripple’s sale of the token to institutional investors constituted a sale of securities under the same legal benchmark. An exemption is Ripple’s circumvention of the court injunction through blind sales/programmatic sales, or open-market sales of the token.
ADVERTISEMENT## Ripple’s Bypass to Institutional Sales
The software engineer’s inference is tied to Schwartz’s revelation that, although Ripple has no control over the XRP still locked in escrow, nothing prevents it from selling the rights to receive the tokens released from escrow to another party. It could also sell the accounts where the escrow directs the unlocked supply.
This way, Ripple does not violate its standing court order against the direct sales of XRP to institutions.
Effect on the Market
Van Code quashed expectations of sharp price spikes upon transfer of the unlocked XRP supply from escrow, though. According to him, the bypass won’t immediately yield to volatility in the token’s value.
ADVERTISEMENTThe software engineer explained that there may be slight periods where the monthly escrow event won’t move prices, unless XRP demand volume significantly picks up from ETF flows. But then again, he said Ripple will only sell what it needs as it doesn’t want to pay a hefty capital gains tax on XRP sales, thus it might lock up the unutilized supply back into escrow.
Lastly, the crypto personality stated that everything is a balancing act, so rest assured that fund managers are closely coordinating with Ripple about the timing of the XRP transfers or sales.
ADVERTISEMENT
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Rakuten Pay Integrates XRP for 44 Million Japanese Users, Enables Payments at 5M+ Merchants
Rakuten Pay has integrated XRP, enabling 44 million users to spend the cryptocurrency at over 5 million merchants in Japan. This integration highlights a shift from trading cryptocurrencies to everyday payments, supported by Japan's favorable regulations and fintech infrastructure.
GateNews4h ago
MoonPay Hints at Potential Ripple Collaboration With XRP-Themed Post
MoonPay's recent social media post featuring an XRP theme has sparked speculation about a potential partnership with Ripple. As both companies focus on enhancing cryptocurrency infrastructure, the implications of this possible collaboration, along with Ripple's initiatives in institutional finance, highlight a shift towards practical applications in the crypto space.
GateNews4h ago
Gate’s “Crazy Wednesday” is live with a hot launch. Complete tasks to win XRP and Glenfiddich whisky. For USDT savings, earn up to 100% APY. For BTC/ETH/SOL staking, earn up to 16% mining APY.
Gate News message, according to Gate’s official announcement on April 15, 2026
Gate launches a “Crazy Wednesday” campaign, running from April 15, 2026 at 14:00 to April 19, 2026 at 16:00 (UTC+8). Users complete multiple tasks to unlock mystery boxes, with a chance to win XRP tokens and Glenfiddich whisky. The mystery box tasks include multiple categories such as flash swaps, spot, and futures trading, as well as top-ups, invitations, and VIP upgrades, and each tier corresponds to a different number of mystery box openings.
Campaign Two launches a USDT wealth-management product, with a 14-day fixed-term annualized yield of 6%. New users can also participate in a 3-day product offering 100% annualized yield. In addition, Yu’e Bao also offers multi-currency wealth-management options such as USAT, USDD, 0G, and APT, with annualized returns of up to 300%. Campaign Three introduces a boosted rewards policy for staking users, offering up to a 16% annualized return for staking BTC, ETH, and SOL; for SOL staking, staking 0–1 coins can yield up to 16% annualized.
GateAnnouncement8h ago
XRP Today News: CLARITY Act Pushes Through in May, Standard Chartered Bank Turns Bullish on $8
Ripple CEO Garlinghouse confirmed at the summit that the CLARITY Act’s goal for passage is by the end of May, and said that the controversy surrounding stablecoin yield rates is nearing resolution. If the bill passes, XRP is expected to rise to $5–$10; otherwise, it could fall back to $1.2. The bill’s passage would create a regulatory framework for the digital asset market, clarify XRP’s classification as a commodity, and reduce compliance barriers for institutional investors.
MarketWhisper10h ago
Rakuten Wallet Integrates XRP for Payments Across 5M+ Merchants in Japan
Rakuten Wallet has launched XRP as a payment method, allowing users to buy XRP with Rakuten Points and spend it at millions of merchants in Japan. This integration expands XRP's reach to a vast, non-crypto user base within Rakuten's extensive ecosystem.
GateNews12h ago
