Ripple implemented a new XRP release, surprising the market with its token distribution strategy. This event occurred amidst changing approaches to managing company reserves.
XRP Release and New Strategy
On July 4, Ripple unlocked a second batch of 500 million XRP from its escrow account, completing a total release of one billion tokens for July. Previously, a first release of 500 million occurred on July 1. This practice features a staggered approach, deviating from the traditional model of a single tranche release.
Changing Reserve Management Approach
Since March 2025, Ripple has altered its escrow management strategy, implementing more flexible release timing and quantities for its tokens. The company now uses smart contracts to deliver tokens in phases, allowing for real-time responses to liquidity and product adoption changes. Of the total one billion tokens released this month, 700 million have already been returned to escrow, with the remaining 300 million allocated to funding on-demand liquidity (ODL), exchange-traded products, and other infrastructure projects.
State of Ripple's Reserves
Ripple continues to hold approximately 36.4 billion XRP in escrow and about five billion in liquid reserves. The modified strategy reflects a shift from routine issuance to targeted deployment, adding a layer of unpredictability to the market. At the time of writing, the token was trading at $2.23, marking a 2.7% decrease in the last 24 hours.
The July XRP release illustrates Ripple's evolving approach to managing large token reserves and their strategic deployment, which could potentially alter market reactions to future releases.
