Ripple carried out its first scheduled XRP escrow release of 2026 on Jan. 1, with blockchain data showing 1 billion XRP unlocked through three transactions completed within seconds around midnight. The release was large, but market data indicated that while trading volume picked up, price volatility stayed relatively restrained compared with the size of the unlock.
Three transactions moved 1 billion XRP
Of the total, 500 million XRP was distributed to two major wallets in tranches of 300 million and 200 million, while Ripple allocated the other 500 million XRP to itself. Observers tracking the addresses said both wallets had already held 500 million XRP from prior releases, leaving each wallet with 1 billion XRP after the latest unlock.
As of publication, none of the newly released tokens had been moved, and Ripple had not returned any unused amount to escrow. Since setting up its monthly escrow release program in 2017, the company has typically relocked unused tokens after reviewing market conditions.
Fake memo attached to unlocks stirred backlash
The controversy centered on memos attached to all three transactions. Many community members first assumed the messages came from Ripple. The memo claimed that Ripple had sold substantial amounts of XRP in 2025 to fund acquisitions and suggested bigger sales in 2026 to support expansion and stablecoin growth. It also used sarcastic language aimed at token holders.
Later clarification from community members and blockchain analysts said the memo did not come from Ripple. Under the escrow design, any party can initiate a scheduled release once the time arrives, and the initiating wallet controls the memo field for that transaction. Ripple is only the designated recipient in that structure, which has been in place since 2017.
Episode exposed confusion over how Ripple escrow works
The incident showed how widely misunderstood the escrow system remains among market participants. A number of traders and holders had incorrectly assumed Ripple controlled the trigger for every release and authored all related on-chain messages. After the incident, community members identified the source of the unauthorized memo and explained the transaction process in more detail.
The Crypto Basic published guidance aimed at separating legitimate communication from unauthorized messages, while several figures in the crypto sector called for better public understanding of escrow mechanics. The unlock came after a period of bearish XRP price action in late 2025, even as industry reports pointed to increased institutional adoption of Ripple technology during the same period.