Disclaimer: This website is for informational purposes only and does not constitute financial advice. Always do your own research before making investment decisions.
What is XRP Escrow?
Escrow is a native feature of the XRP Ledger that allows XRP to be locked in a trustless, on-chain smart contract — no third party required.
Think of it like a time-locked vault built directly into the blockchain. Once XRP is placed in escrow, nobody — not even the creator — can touch those funds until the release conditions are satisfied.
EscrowCreateLocks XRP into an escrow object on the ledger.
EscrowFinishReleases escrowed funds to the destination.
EscrowCancelReturns funds if cancellation deadline has passed.
Types of Escrow
| Type | How It Works | Example |
|---|---|---|
| Time-based | Funds release after a specific timestamp (finishAfter) | Scheduled payments, vesting |
| Condition-based | Funds release when a cryptographic condition is fulfilled | Atomic swaps, Interledger |
| Combination | Both time AND condition must be met | Complex contractual agreements |
Ripple's 55 Billion XRP Escrow
55,000,000,000 XRP
Locked into cryptographically enforced escrow contracts on the XRP Ledger
Why They Did It
Predictability
Everyone can see exactly when XRP becomes available
Transparency
All escrow transactions are publicly verifiable
Trust
Ripple mathematically cannot access funds early
Supply Ceiling
Hard cap of 1 billion XRP per month
Monthly Escrow Releases
How It Works
On the 1st of every month, escrow contracts unlock up to 1,000,000,000 XRP. Unlocked ≠ sold.
Historical Pattern
| Period | Monthly Pattern | Notes |
|---|---|---|
| 2018–2019 | ~300M used, ~700M re-escrowed | Early escrow period |
| 2020–2021 | ~200-300M used, ~700-800M re-escrowed | SEC lawsuit period |
| 2022–2023 | ~200-300M used, ~700-800M re-escrowed | Conservative approach |
| 2024 | 3.22B XRP sold through year | XRP near $0.50 most of year |
| Jan 2025 | 300M used, 700M re-escrowed | Re-locked to March 2028 |
| Feb 2025 | 300M used, 700M re-escrowed | Standard pattern |
How Escrow Impacts XRP Price
Max monthly release
1B XRP
Protocol-enforced ceiling
Net monthly increase
200-300M
~0.3-0.5% of circulating supply
Schedule
Fixed
1st of every month
Deflationary offset
14.26M burned
Fees burn XRP permanently
Ripple's actual XRP sales are a fraction of what critics claim. Most institutional sales happen OTC. The net new supply represents ~0.3-0.5% of circulating supply — comparable to Bitcoin's mining inflation. Additionally, RLUSD transactions on the XRPL burn XRP fees, creating deflationary pressure that partially offsets escrow releases.
Escrow Tracker & Data
Key Numbers (February 2026)
| Total XRP Supply | 100,000,000,000 |
| Circulating Supply | ~60,000,000,000 |
| In Escrow | ~33,900,000,000 |
| Burned (fees) | ~14,260,000 |
| Monthly Unlock | 1,000,000,000 |
| Typical Re-escrow | 700-800M |
| Net Monthly | ~200-300M |
Where to Track
Common Misconceptions
“Ripple dumps 1 billion XRP on the market every month”
Reality: Ripple unlocks 1 billion XRP monthly — an automatic, scheduled event. They typically re-escrow 700-800 million immediately. Only 200-300 million enters potential circulation.
“Ripple controls XRP and can manipulate the price”
Reality: The escrow is enforced at the protocol level. Ripple cannot access escrowed funds early — the code won't allow it.
“The escrow will flood the market when it ends”
Reality: Because Ripple re-escrows 60-80% each month, the system extends continuously. At current rates, full depletion is many years away.
“XRP has infinite inflation”
Reality: XRP has a fixed supply of 100 billion. No new XRP can be created. The escrow controls the pace of pre-existing XRP entering circulation. Plus, XRP is deflationary — fees burn XRP permanently.
“Escrow unlocks crash the price”
Reality: Monthly unlocks are fully predictable and priced in. Data shows no consistent correlation between unlock dates and price drops.
Frequently Asked Questions
Continue Reading
Understanding XRP Supply?
Now that you understand how escrow works, you know XRP's supply is transparent and predictable. Ready to start accumulating?
The Bottom Line
XRP's escrow system is one of the most transparent supply management mechanisms in crypto. After 8+ years of operation, it has delivered exactly what it promised.
Last updated: February 2026