Former Ripple CTO Drops Truth Bomb On Billions of XRP in the Escrow

The XRP army has unearthed an old post from former Ripple CTO David Schwartz confirming a strategy many in the XRP community have discussed for years.

Schwartz stated that Ripple could “sell the right to receive the tokens released from escrow” or even sell the accounts that the escrows complete into. He added that “the XRP still can’t circulate until their release dates.”

The statement was shared by crypto commentator John Squire (@TheCryptoSquire). It is notable because it comes directly from one of Ripple’s most senior figures, lending credibility to a funding model that has circulated largely as speculation.

How the Mechanism Works

The structure is straightforward. Ripple holds a significant portion of XRP in escrow, with tokens released on a scheduled basis. Rather than waiting for those release dates to monetize the holdings, Ripple can sell the rights to receive those future tokens now.

Buyers secure a guaranteed future supply of XRP at agreed terms. Ripple receives capital immediately. The tokens themselves do not enter circulation until the escrow matures, so there is no direct selling pressure on the open market.

This is a meaningful distinction. Critics of Ripple’s escrow holdings have long pointed to the scheduled releases as a source of potential downward price pressure. This mechanism separates capital generation from token circulation entirely.

The Amazon Rumor and What It Represents

An unconfirmed report of a 5 billion XRP deal between Ripple and Amazon involving escrowed tokens has circulated for years. Neither Ripple nor Amazon has confirmed this. What Schwartz’s statement does establish is that deals of this nature are structurally possible.

If deals like this exist or materialize, the effect on institutional adoption could be significant. An institution that secures rights to a future XRP supply has a direct financial incentive to integrate XRP into its operations before those tokens arrive. Adoption becomes part of the transaction itself.

Utility as the Foundation for Institutional Interest

Squire highlighted Schwartz’s comments as evidence of strategic positioning rather than selling pressure. His point is that XRP’s utility as a payment asset is what makes these arrangements attractive to institutions in the first place.

Ripple has not made any formal announcements about specific escrow deals. Whether confirmed deals emerge publicly or not, the mechanism is real. Institutional interest in future XRP supply, combined with Ripple’s ability to monetize that interest without immediate market impact, positions the company to expand its operations on its own terms.

Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are advised to conduct thorough research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.

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