Ripple moves 500 million XRP to a new account as it plans a $1 billion treasury firm to manage its XRP holdings.
Ripple has transferred 500 million XRP to a new account that is neither escrowed nor protected by multi-signature settings. The move was noted by XRP Ledger validator Vet, who described it as unusual given the account type. This transfer comes as Ripple plans to raise up to $1 billion for a proposed XRP treasury firm.
Details of the Unusual XRP Transfer and Account Characteristics
Vet shared in an X post that Ripple moved 220 million XRP to a fresh account within the total 500 million XRP transfer. He noted that the account does not have multi-signature protections, which is not common for accounts holding large amounts of XRP.
He added that creating fresh accounts for transfers is a regular practice for Ripple. However, the lack of account protections in this case was surprising. XRP Scan data confirmed that the transfer occurred and the account is separate from Ripple’s monthly XRP unlock process.
Ripple’s Plans to Contribute XRP to a Proposed Treasury Company
The transfer aligns with Ripple’s plan to contribute part of its holdings to a proposed digital asset treasury (DAT) company. The treasury firm is expected to hold XRP as part of its reserve. Ripple currently holds 41.85 billion XRP, including those in escrow, which accounts for over 35 percent of the total supply.
Vet stated that the creation of the treasury company could act as a distribution mechanism. He explained that XRP held by treasury entities does not enter exchanges immediately, which may help stabilize supply and maintain long-term holding patterns.
Market Perspective on XRP Distribution and Long-Term Holding
Vet emphasized that market participants are unlikely to face selling pressure from these entities. He said, “XRP bought by those vehicles from Ripple’s holdings also translates into more XRP that won’t hit a crypto exchange immediately.”
The validator added that Ripple’s goal is to distribute XRP to holders committed to long-term holding. He noted that finding these entities helps support consistent demand while limiting rapid sell-offs.
This unusual transfer of 500 million XRP marks an important step as Ripple continues to structure its treasury plans. The move indicates that Ripple is actively preparing for the creation of its digital asset treasury and managing its large XRP holdings in a structured way.
Source: https://www.livebitcoinnews.com/xrp-news-ripple-moves-500-million-xrp-in-unusual-transfer-ahead-of-treasury-plans/
