Coinbase’s XRP Reserves: A Significant Decline and Its Implications
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A Notable Decline in Coinbase’s XRP Holdings
Coinbase, a prominent player in the cryptocurrency exchange arena, has witnessed a substantial reduction in its XRP holdings, sparking curiosity about the destination of these tokens. On-chain analytics reveal that the exchange’s cold storage now retains only a minimal portion of its former XRP reserves, with a staggering decline of over 90%.
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This development comes amidst heightened scrutiny from the XRP community regarding institutional activities, with circulating rumors suggesting that major corporations such as BlackRock may be quietly increasing their exposure to XRP.
The Extent of the Reduction in Coinbase’s XRP Holdings
Recent revelations regarding Coinbase’s XRP reserves have taken the crypto industry by surprise. Data indicates that Coinbase, which previously held the position of the fifth-largest XRP holder, has dramatically reduced its reserve from approximately 780.13 million XRP to 199.47 million, marking a significant 69% reduction since mid-2025.
However, details from the @XRPwallets account on social media platform X suggest that Coinbase has continued to decrease its XRP holdings. As recently disclosed by @XRPwallets, Coinbase’s current holdings are spread across six cold wallets, each containing around 16.5 million XRP, totaling approximately 99 million XRP.
In stark contrast, back in June, Coinbase maintained 52 cold wallets, with 10 wallets holding 26.8 million XRP each, and an additional 42 wallets containing 16.8 million XRP each. This formerly amounted to nearly 970 million XRP under Coinbase’s management. The latest figures reflect a dramatic 90% reduction in XRP reserves over just three months.
This substantial reduction in XRP reserves at Coinbase is thought to be linked to the accumulation of XRP by institutional investors, possibly in preparation for the anticipated launch of a Spot XRP ETF in the United States. This aligns with past reports of BlackRock’s indirect engagement with XRP through Coinbase’s custodial offerings.
Implications for the Future of XRP
The significant outflow of XRP from Coinbase has generated considerable discussion among cryptocurrency investors, as evidenced by conversations on social media platforms. The @XRPwallets account has hinted at the possibility that these extensive transactions may be associated with BlackRock’s involvement.
On social media platform X, an account named Stern Drew proposed that Coinbase’s actions might be part of a strategic maneuver to influence XRP’s market price. This assertion was swiftly countered by Bill Morgan, a well-known pro-XRP attorney, who dismissed any allegations of market manipulation.
Although there hasn’t been any official confirmation, the most plausible rationale for these notable XRP withdrawals is linked to the potential launch of an XRP ETF. The likelihood of the SEC approving an XRP ETF in 2025 stands at 94% according to Polymarket, with Bloomberg analysts estimating similar odds at or above 90%.
Large institutional players may be accumulating XRP in anticipation of this financial product, and the reduced availability on exchanges could lead to increased buying pressure even before the ETF’s introduction. At present, XRP is valued at $3, experiencing a 2.9% decrease over the past day.
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