Coinbase has unexpectedly reduced its XRP holdings by 40%, noticeable through on-chain activity. This event may suggest possible changes in the company's operational strategy.
Reduction of XRP Holdings
Coinbase has significantly reduced its XRP holdings by 40% through a sudden rotation across its cold wallets. This change was tracked by observers via blockchain data, indicating shifts in Coinbase's custody strategy for XRP.
Implications for XRP Custody and Market
The use of wallets changes has significant implications for XRP custody, although it has not impacted Coinbase's trading volumes. Analysis suggests movements of XRP to addresses linked to partners like Bitstamp could signal integration with Ripple's On-Demand Liquidity services.
No Immediate Market Impact
There have been no significant trading fluctuations following the wallet rotation. Despite the fact that such shifts usually precede or follow market volatility, current data shows no immediate regulatory changes affecting Coinbase's operations.
The reduction of XRP holdings by Coinbase raises questions about potential changes in their custody strategies and operational activities. However, at this point, it has not affected trading volumes or market trends.
