Is the U.S. Government Targeting Ripple’s XRP Escrow for a National Crypto Reserve?
Social media is buzzing with a bold claim: the U.S. government might be eyeing Ripple’s XRP escrow for its future financial reserves. The rumor surfaced shortly after Ripple unlocked 1 billion XRP from escrow in June 2025, worth over $2.2 billion at current market prices.
Crypto influencers John Squire and Pumpius fanned the flames on X (formerly Twitter), with speculative posts suggesting that XRP could be added to a national crypto reserve.
The Facts Behind the Unlock
Ripple routinely releases 1 billion XRP monthly from its escrow system in a pre-programmed way to maintain liquidity and market stability. This time, the XRP was distributed in three tranches—500M, 300M, and 200M, raising eyebrows due to the massive dollar value involved.
The escrow system, designed by Ripple, holds a significant portion of XRP’s supply and automatically returns unused tokens back to escrow. This design prevents market flooding and builds trust in the token’s controlled supply.
Because of its scale and use in cross-border transactions, some speculate the U.S. might consider XRP a strategic digital asset in a future tokenized reserve model. However, legal experts aren’t buying it.
Legal Experts Debunk the Hype
Renowned attorney Bill Morgan swiftly dismissed the rumor, tweeting, “No, it won’t,” in response to the claim that the U.S. could seize Ripple’s escrowed XRP. No official comment from it or U.S. authorities has been made to support the speculation.
FedNow & Ripple: Mixed Signals?
Adding to the confusion, online chatter claims that XRP is being used in the Federal Reserve’s FedNow payment system. While it’s true that Volante Technologies, a RippleNet partner, is involved in the FedNow pilot, there’s no confirmation that XRP tokens themselves are being used.
Volante’s use of its blockchain technology does not equate to XRP integration. As of now, there is no official statement from the Fed or Ripple validating XRP’s involvement in FedNow.
Trump’s Crypto Reserve Comments Spark Buzz
Earlier in 2025, Donald Trump floated the idea of building a U.S. crypto reserve including altcoins like XRP, Solana (SOL), and Cardano (ADA). However, only a Bitcoin-centric reserve has been established so far.
Meanwhile, with Ripple’s ongoing legal battle against the SEC nearing resolution, XRP is gaining traction and regulatory clarity. This has fueled optimism and further speculation about its potential role in national finance.
Bottom Line
As it stands, the idea of the U.S. government seizing Ripple’s XRP escrow is unfounded speculation. There are no legal mechanisms, official filings, or credible sources backing the claim. Until proven otherwise, this remains just another crypto rumor—one of many in the XRP community.
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