Ripple Chief Technology Officer David Schwartz has clarified that while XRP tokens locked in escrow cannot be circulated before their scheduled release dates, the rights to these tokens can be sold or transferred. This revelation addresses long-standing debates about XRP's supply dynamics and market capitalization.
XRP's total supply is capped at 100 billion tokens, with over 65 billion currently in circulation and more than 35 billion XRP—approximately 30% of the total—held in escrow across 14,180 separate accounts. Schwartz stated on October 27, 2025, that "the escrow accounts cannot be accessed before their release dates, but their legal claim could be transferred." He further explained that Ripple could sell the right to receive tokens upon release or even transfer the accounts where escrows complete, though the XRP itself remains non-circulatable until unlock dates.
This insight challenges traditional market cap calculations, as XRP's current valuation excludes escrowed tokens, unlike Bitcoin's approach of including all mined coins. Schwartz's comments could lead investors to reassess XRP's liquidity and true market value, introducing new flexibility without altering the token's release schedule.
Recent on-chain activity, reported by Whale Alert, includes 4 million XRP locked in escrow and a transfer of 15 million XRP to Bitstamp, worth approximately $42.1 million, signaling heightened market interest and potential shifts in institutional positioning.
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