Coinbase’s involvement with XRP has dramatically dwindled over the past few months, revealing a significant shift in the exchange’s cryptocurrency management. At the onset of the summer, Coinbase held approximately 970 million XRP spread across 52 cold wallets. Notably, ten of these wallets each contained around 26.8 million XRP, while the others held around 16.8 million XRP. However, just three months later, this figure has plummeted, with only four wallets remaining operational, each containing about 16.4 million XRP.
Currently, the total XRP balance in these surviving wallets stands at roughly 65.6 million, representing less than 7% of the coins held in June. Observers have been monitoring these changes closely, speculating about the potential implications of these large-scale transactions. As one enthusiast pointed out, the transfer of such substantial amounts, particularly in relation to potential future developments like an ETF, raises questions about the underlying strategy. It seems unusual for Coinbase to deplete its cold storage without a clear plan for the assets.
Since the beginning of the summer, over 900 million XRP have been moved from Coinbase’s active storage in under three months, a staggering value approaching $2.8 billion based on current market prices. Just recently, a notable transfer of 16.5 million XRP, worth about $51.4 million, was executed through the exchange, indicating that significant transactions are still occurring despite the ongoing wallet depletion.
The reasons behind Coinbase’s shifting XRP holdings are being evaluated by on-chain analysts. While many wallets are now inactive, this does not necessarily suggest that the XRP is departing the platform entirely. It is possible that these assets are being relocated to new, unidentified wallets as part of a routine custody restructuring. However, the sheer scale of the transactions prompts speculation that institutional investors may be absorbing these coins. Some theories suggest that major players, potentially including financial giants like BlackRock, could be utilizing Coinbase’s platform to discreetly acquire XRP on behalf of their clients, minimizing visibility in the public domain.
Regardless of the underlying motivations, the stark reduction in Coinbase’s XRP holdings—from nearly one billion to below 70 million—signals a major transformation in how the exchange is handling this particular cryptocurrency asset. The implications of this shift are still unfolding, and many in the crypto community remain attentive to further developments.
