Ripple Escrow Activity Shifts as 400M XRP Locked and EVM Sidechain Goes Live

Sean Williams
Ripple

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Key Takeaways:

  • Ripple’s July 2025 escrow activity included a 400 million XRP lock-up and an irregular unlock pattern suggesting internal process changes.
  • The XRPL EVM sidechain’s launch on mainnet expands the XRP Ledger’s smart contract capabilities, enabling Ethereum-based applications.
  • Market response remains cautious, with XRP trading slightly lower at $2.19 as investors await more clarity on Ripple’s updated escrow strategy.

Crypto data platform Whale Alert has flagged that Ripple Labs locked 400 million XRP—valued at approximately $876 million—into escrow on July 1, 2025. This move comes amidst growing scrutiny of Ripple’s evolving escrow mechanics and internal token distribution patterns.

XRP Escrow Pattern Shifts Raise Eyebrows

Traditionally, Ripple has unlocked 1 billion XRP per month as part of its automated escrow system. However, 2025 has seen Ripple depart from this consistent routine. In March, for instance, the firm refrained from creating new escrow contracts from freshly unlocked tokens and instead sourced them from existing XRP holdings—a notable deviation.

This July, Ripple unlocked 500 million XRP in two tranches—300 million and 200 million. Analysts believe the 300 million XRP portion is earmarked for On-Demand Liquidity (ODL), strategic partnerships, or exchange-traded products (ETPs). On July 2, a third attempted unlock of 300 million XRP was spotted but reportedly failed, raising questions about internal mechanics or smart contract behavior.

Ripple’s Escrow Activity Shows Irregular Timing

Further contributing to the scrutiny, Ripple released $2.2 billion worth of XRP on June 4—off-schedule from its typical first-day-of-month activity. From this amount, 670 million XRP were re-locked into escrow later that month. These irregularities have left the crypto market anticipating a formal clarification or update from Ripple to reconcile these apparent anomalies.

While Ripple technically does not control the 38 billion XRP still in escrow—managed via smart contracts—the company has disclosed that it actively holds around 5 billion XRP for operational use.

XRPL EVM Sidechain Goes Live on Mainnet

On a more bullish note for XRP, the XRP Ledger (XRPL) officially launched its Ethereum Virtual Machine (EVM) compatible sidechain on mainnet. Built in collaboration with Peersyst, Axelar, and Ripple, the sidechain enables full Ethereum smart contract functionality on the XRPL network.

Also Read: Ripple vs SEC Lawsuit: Appeal Dismissal Could Take Weeks, Says Former SEC Lawyer

This milestone opens the door for dApps and DeFi protocols to thrive within the XRP ecosystem for the first time, a move that analysts say could enhance utility and attract new developer communities.

At launch, XRP briefly rose in value, hitting $2.20, before slightly retreating to $2.19 at press time—a 0.87% daily decline.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.

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