Coinbase’s Strategic Reduction in XRP Holdings
In a move that has caught the crypto world by surprise, Coinbase, a leading digital currency exchange, has drastically reduced its XRP holdings. Recent data from XRPScan reveals that the exchange has slashed its XRP reserve from over 780 million to approximately 200 million in just a few weeks. This dramatic 69% reduction aligns with increased involvement from institutional partners such as BlackRock.
Significant Reduction in Coinbase’s XRP Reserves
Previously ranked as the fifth-largest holder of XRP, Coinbase now stands in the tenth position after a massive cutback. In the second quarter of 2025, Coinbase held around 780.13 million XRP, which has now dwindled to 199.47 million. This steep decline, particularly a 57% drop in the last month alone, suggests substantial outflows attributed to institutional investors.
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Currently, Coinbase’s holdings are distributed across 11 cold wallets, each containing 16.5 million XRP tokens. This is a stark contrast to early June figures showing 52 cold wallets with a combined total of 970 million XRP. Observers, including the XRPwallets account on the social media platform X, speculate that these movements might be linked to BlackRock’s recent activities.
BlackRock’s Influence on Coinbase’s XRP Strategy
The collaboration between BlackRock and Coinbase, announced in early August, aimed to streamline institutional access to digital assets through Coinbase. While initially focusing on Bitcoin, the partnership has likely expanded to include XRP due to its increasing institutional demand. This strategic alliance could be a driving force behind the significant reduction in Coinbase’s XRP holdings.
Retail Traders’ Growing Role in XRP Exchanges
According to XRPwallets, the remaining XRP in Coinbase’s wallets is likely held by retail traders. It’s anticipated that other major exchanges, like Uphold, Binance, and Upbit, might eventually reflect similar XRP balances, around 200 million each, as Ripple’s distributions circulate through the market. This prediction suggests that approximately 1 billion XRP could remain across exchanges, with another 900 million in retail cold wallets.
Although these numbers are speculative, they highlight a trend where institutional channels are absorbing XRP, positioning exchanges primarily for retail trading. Notably, exchanges such as Upbit and Uphold have also experienced significant reductions in their XRP reserves during the same period. Upbit’s XRP balance decreased from 6.03 billion to 5.84 billion, while Uphold’s holdings fell from 1.907 billion to 1.746 billion.
XRP Market Dynamics and Future Outlook
Currently trading below the $3 resistance level after several rejections this month, XRP’s short-term trajectory remains uncertain. However, the reduction in exchange balances often indicates decreased selling pressure, potentially supporting price stability. As of now, XRP is trading at $2.83, marking a 0.8% increase over the past 24 hours.
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