Coinbase Reduces XRP Holdings Amid Institutional Moves
- Coinbase reduced XRP holdings by 85% amid institutional custody shift.
- Market volatility increases as liquidity drops by 66%.
- No official statement from Coinbase on a 90% XRP “dump.”
Coinbase has significantly reduced its XRP holdings by approximately 83-85% from Q2 to September 2025, moving most to potential institutional custody arrangements with BlackRock.
This reduction highlights potential shifts in cryptocurrency custody strategies and impacts XRP liquidity, causing divided opinions among industry experts and fueling community speculation.
Coinbase’s XRP Reduction Connected to BlackRock
Coinbase’s reduction of XRP reserves involved moving from over 780 million XRP to around 132 million. This shift occurred over approximately three months and aligns with institutional custody arrangements at BlackRock.
The move to BlackRock’s custody hints at a more stringent institutional strategy. Coinbase’s management, led by CEO Brian Armstrong, has not issued an official statement clarifying the intentions behind these actions.
XRP Liquidity Dropped 66% Post Coinbase Move
The reduction in XRP holdings resulted in a 66% drop in liquidity, with potential market volatility. The decline raised concerns amongst investors, notably affecting XRP’s price stability significantly.
Financial implications include intensified market uncertainty and possible shifts towards institutional custody trends. Community responses are divided, with some attributing these shifts to market influences beyond exchange control.
Similar Patterns Seen with Binance’s Altcoin Strategy
Similar reductions in altcoin reserves by exchanges, such as Binance, have sparked discussions regarding potential market manipulation. However, major U.S exchange declines of this scale remain rare.
Expert analysis suggests potential outcomes ranging from increased institutional involvement to regulatory shifts. No evidence of manipulation has emerged, though historical data indicates market adjustments during such events.
Stern Drew, Crypto Investor, – “Coinbase decreased its XRP reserves from 780 million to 199 million. Timing of reductions often coincided with low-liquidity hours, which could amplify downside price swings.”
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