TLDR
- XRP surged from $0.50 to over $3 despite ongoing monthly escrow releases by Ripple.
- Ripple releases 1B XRP monthly but typically uses only 200–350M; unused tokens return to escrow.
- SEC acknowledged Ripple’s escrow system was designed to support XRP’s price, not lower it.
- Escrow releases represent a small share of XRP’s daily trading volume, minimizing market impact.
Ripple’s XRP escrow mechanism is once again at the center of public debate. This follows a sharp increase in XRP’s price, with many users questioning whether Ripple’s monthly token releases from escrow have any negative effect. Lawyer Bill Morgan has rejected claims that the company uses escrow to dump tokens and drop the price.
The latest claims surfaced after Ripple released 1 billion XRP tokens from escrow in July 2025. Despite these releases, XRP’s price moved from around $0.50 to over $3.00. Morgan responded by pointing to the legal understanding of the escrow system and Ripple’s long-standing practices.
Lawyer Cites SEC in Defense of Ripple’s Escrow Strategy
Attorney Bill Morgan addressed the issue through his public post on X, saying, “Even the SEC recognised that the escrow was intended to buttress the price of XRP not deflate it.” He stated that the U.S. Securities and Exchange Commission had acknowledged Ripple’s intentions when designing the escrow system in 2017.
The escrow system was originally built to control the release of 55 billion XRP tokens. Ripple unlocks 1 billion tokens each month, but only a small portion—typically 200 to 350 million—is used. The rest are returned to escrow. According to Morgan, this controlled release is not large enough to damage the market or lower the token’s value.
Even the SEC recognised that the escrow was intended to buttress the price of XRP not deflate it. The SEC considered this to be one of the factors that would give investors an expectation of profits from the efforts of ripple. It is one of the scores of grounds I have posted to… https://t.co/JcT6xCpFiY
— bill morgan (@Belisarius2020) July 22, 2025
Morgan also pointed out that Ripple’s actions have been consistent for years. He added that the total XRP trading volume far exceeds the amount released from escrow each month. As a result, the escrow releases do not hold enough weight to cause a price crash.
XRP Price Climbs Despite Ongoing Monthly Token Releases
Despite multiple monthly releases in late 2024 and early 2025, XRP has seen strong price movement. The token has grown from early 2024 levels of around $0.50 to over $3.00. This contradicts the claims that Ripple’s token supply strategy hurts investors or traders.
Morgan wrote in an X post, “What is there to say about the discredited escrow dump theory that has not already been said.” He added, “If it needed a coup de grace to send it to its final resting place, it was the massive rise in XRP price.”
What is there to say about the discredited escrow dump theory that has not already been said. If it needed a coup de grace to send it to its final resting place, it was the massive rise in XRP price from $0.50 to over $3.00 despite further releases of XRP by Ripple from escrow in… https://t.co/cqTcjR4k2N
— bill morgan (@Belisarius2020) February 27, 2025
The increase in XRP’s price during and after multiple escrow releases suggests other factors are driving the market. These include broader adoption of RippleNet and growing support for digital payment solutions.
Ripple’s Escrow Strategy Explained
Ripple’s escrow mechanism was created to build trust in the XRP market and ensure that new token releases follow a clear schedule. Introduced in 2017, the system aimed to reduce supply shocks and manage token circulation over time.
Each month, Ripple unlocks 1 billion XRP, though only part of that is moved into circulation. The remaining tokens are returned to escrow. This approach allows Ripple to support its network without flooding the market with excess supply.
Morgan also responded to past rumors about the U.S. government possibly taking control of the XRP held in escrow. In a clear statement, he said, “No, it won’t,” addressing concerns about nationalization or seizure of the assets.
Ripple’s use of the escrow system continues to attract criticism from parts of the crypto community. However, the lawyer’s statements and the recent price trends suggest that the ongoing releases have not stopped XRP’s growth.
Stay Ahead of the Market with Benzinga Pro!
Want to trade like a pro? Benzinga Pro gives you the edge you need in today's fast-paced markets. Get real-time news, exclusive insights, and powerful tools trusted by professional traders:
- Breaking market-moving stories before they hit mainstream media
- Live audio squawk for hands-free market updates
- Advanced stock scanner to spot promising trades
- Expert trade ideas and on-demand support
