Ripple established the escrow system in December 2017 to control XRP issuance and ensure market stability. This article examines the company's current approach to managing reserves and possible scenarios for their depletion.
Current Structure of Ripple's Escrow Mechanism
Ripple's escrow system was established in December 2017 by locking away 55 billion XRP to prevent oversupply. Each month, 1 billion XRP is released from escrow, but a substantial portion is typically re-locked for supply control.
As of July 2025, escrow still contains 35.908 billion XRP, distributed across 14 wallets. The remaining balance is released on a predetermined schedule and remains subject to Ripple's discretionary re-locking strategy.
Projected Timelines Based on Different Scenarios
A recent analysis published by a leading analyst outlined projections regarding the future of escrow depending on Ripple's XRP usage. In 2025, Ripple re-locked 700 million XRP each month except for June, when 670 million was returned. This suggests a moderate reduction in the amount being re-locked.
If Ripple continues to retain 700 million XRP monthly and utilizes only 300 million, the escrow balance would last approximately 10 more years. However, if starting in January 2026, usage increases to 400 million, the remaining escrow would last about 7.5 years.
Adjustments in Release Timing and Behavior
Since March 2025, Ripple has begun modifying the release schedule. Instead of unlocking 1 billion XRP on the first day of each month, in July 2025, 500 million XRP was unlocked on July 1 and another 500 million on July 4. This new phased-release method aligns with broader changes in how Ripple allocates unlocked XRP.
In July, 300 million was used for business activities such as Ripple Payments and strategic partnerships, while the remaining amount was returned to escrow. These evolving escrow practices reflect Ripple's effort to maintain market balance while supporting ongoing operational needs.
In conclusion, current trends indicate a potential depletion of Ripple's reserves within the next decade. However, any changes in release frequency or retained amounts could significantly affect how long the escrow reserves will last.
