Ripple unlocks 1 billion XRP as CLARITY Act vote nears

Ripple unlocks 1 billion XRP from escrow on Sept 1, worth about $1.3 billion, as the token trades at $1.37 as of 08:46 UTC.

The monthly release is part of a program Ripple set up in 2017, when it locked 55 billion XRP into time-based contracts, according to company disclosures. A filing with the U.S. Securities and Exchange Commission suggests Ripple could unlock additional tokens if lawmakers pass the CLARITY Act, which would classify XRP as a digital commodity under CFTC oversight.

Ripple has historically re-locked 600 million to 800 million of the 1 billion tokens each month, leaving a net addition of 200 million to 400 million XRP to circulating supply. In August, the company returned 700 million XRP to escrow, a net increase of about 300 million tokens. Escrow holdings have fallen from 55 billion XRP in 2017 to roughly 38 billion.

The Senate is scheduled to hold a procedural vote on the CLARITY Act on Sept 15. A clearer U.S. regulatory framework could lift demand for XRP, potentially justifying larger releases from escrow. Spot XRP ETFs recorded net inflows of about $110.5 million in the week ending late August, pushing cumulative inflows to an all-time high of $1.66 billion.

Supply dynamics vs institutional demand

The unlock arrives as XRP consolidates after a rally that took it above $1.70 before retreating. The token is up roughly 28 to 31 percent over the past 30 days but remains about 23 percent in the red year-to-date. XRP trades above both its 50-day moving average of $1.14 and 200-day moving average of $1.28, with a 14-day relative strength index of 60.45, according to Finbold data.

The divergence between spot selling pressure and institutional accumulation is stark. Bitwise's XRP ETF leads with about $600 million in cumulative inflows, followed by Canary at $483 million and Franklin Templeton at just under $463 million. Ripple's dollar-pegged stablecoin RLUSD has also surpassed $2 billion in market capitalization, with roughly $1 billion circulating on the XRP Ledger.

While escrow releases can trigger short-term volatility, historical data shows XRP typically stabilizes quickly after each monthly unlock. The coming week tests whether ETF accumulation can absorb the additional supply as the CLARITY Act vote approaches.

This article is for informational purposes only and does not constitute investment advice.