Rumors Swirl: Is the U.S. Government Eyeing Ripple’s XRP Escrow for Financial Reserves?

Andrew Chen
Ripple (XRP)

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Key Takeaways:

  • No, the U.S. is not seizing Ripple’s XRP escrow, despite social media rumors.
  • FedNow is not using XRP directly, though Ripple tech has been integrated through partners.
  • The idea of a national crypto reserve is still speculative, with no official adoption of XRP confirmed.

Speculation is spreading rapidly on social media that the U.S. government may target Ripple’s XRP escrow for use in national financial reserves. The buzz began shortly after Ripple unlocked 1 billion XRP from its escrow account in June 2025, igniting theories and heated discussions across crypto circles.

Rumors Sparked by Crypto Influencers and Escrow Unlock Timing

Prominent crypto personalities, John Squire and Pumpius, were the first to amplify the rumor via posts on X (formerly Twitter). They hinted that XRP might eventually be added to a potential U.S. crypto reserve. The unlocked XRP, totaling 1 billion tokens valued at over $2.2 billion, was released in three tranches of 500 million, 300 million, and 200 million tokens.

While Ripple routinely unlocks 1 billion XRP from escrow each month to ensure market liquidity, the timing of this release led some to suggest potential U.S. government interest in acquiring the coin for strategic financial purposes.

The Purpose of XRP Escrow and Strategic Asset Speculation

Ripple’s XRP escrow system was implemented to regulate token supply and foster stability in the market. Unused tokens are typically returned to escrow, and the transparent release schedule is meant to maintain trust in XRP’s liquidity.

However, due to the large amount of the coin held in escrow and its potential for use in cross-border payments, some crypto advocates believe it could become a strategic reserve asset for U.S. financial systems. That said, legal experts like attorney Bill Morgan have dismissed the rumors outright. “No, it won’t,” he stated firmly when asked about the potential government seizure.

FedNow Rumors and Ripple’s Blockchain Integration

Adding to the speculation are rumors that the Federal Reserve’s FedNow payment system is already using the coin. While Ripple’s blockchain technology has indeed been integrated into Volante Technologies, a partner in the FedNow pilot, there is no evidence or official confirmation that the coin, the cryptocurrency, is being utilized in the program.

The XRP Ledger is being tested in various settlement scenarios, but this does not equate to the use of XRP in U.S. government operations.

Also Read: $703M in XRP Moved by Ripple Partner SBI — Could This Signal Japan’s First XRP ETF?

National Crypto Reserve Talk and Trump’s Crypto Comments

Earlier in 2025, former President Donald Trump suggested the idea of a national crypto reserve that could include altcoins like XRP, Solana (SOL), and Cardano (ADA). So far, however, only a Bitcoin-focused reserve has been established.

Meanwhile, Ripple’s ongoing legal battle with the SEC is nearing resolution, and the increasing regulatory clarity around XRP has added fuel to the speculative fire.

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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