David Schwartz: Ripple Is Able to Sell Rights to XRP Locked In Escrow

AllInCrypto (@RealAllinCrypto), a prominent cryptocurrency pundit, has drawn attention to a post from Ripple’s Chief Technology Officer, David Schwartz, that clarifies how Ripple can manage its locked XRP reserves.

On October 27, Schwartz wrote, “Ripple could sell the right to receive the tokens released from escrow or even sell the accounts the escrows complete into. But the XRP still can’t circulate until their release dates.”

Can Ripple Sell Its Escrowed XRP?

His explanation confirms that Ripple can transfer or sell future claims to the XRP held in escrow, though the tokens themselves remain restricted until their designated release.

AllInCrypto noted that Ripple currently holds about 35 billion XRP in escrow, valued at approximately $92 billion at the time of the post. These tokens are gradually released through a structured schedule designed to maintain liquidity discipline.

Schwartz’s statement introduces the possibility that Ripple can monetize the value of these holdings before release by selling the rights to receive them later. This practice could provide the company with additional funding options while maintaining adherence to the escrow’s established terms.

Strategic Financial Applications for Ripple

In his post on X, AllInCrypto described this as a way for Ripple to enable “the pre-selling of XRP that will be released later,” which would allow the firm to access capital tied to its escrowed assets without altering token circulation.

The clarification offers new insight into how Ripple may handle its extensive reserves. By selling future claims rather than active tokens, Ripple can potentially strengthen liquidity management and support new business initiatives.

This development aligns with Ripple’s growing focus on corporate and institutional partnerships, particularly following its backing of Evernorth Holdings. The new company, supported by Ripple and other major investors, plans to raise over $1 billion through a public listing to establish a treasury of XRP.

If Ripple can legally and technically sell rights to escrowed tokens, the mechanism could support structured arrangements like Evernorth’s, providing predictable XRP allocations for institutional operations and treasury management.

Market Significance and Operational Impact

The capacity to sell future rights to XRP may mark an evolution in how Ripple utilizes its reserves within regulated financial frameworks. It presents a way to engage in financing or capital initiatives while maintaining compliance with the escrow release model that governs XRP supply.

It also rekindles intriguing ideas, like the U.S. government paying off its national debt with the escrowed tokens. Such flexibility could help Ripple expand its participation in broader capital markets and facilitate new institutional uses of XRP without directly increasing available market supply.