Ripple releases billions of XRP each month from its escrow vaults, but this month’s move seems unusual.
Usually, Ripple releases 1 billion XRP from its escrow accounts on September 1st, marking a new phase in its process. 500 million XRP (around $1.38 billion) was transferred, followed by 300 million (about $830 million), and 200 million (roughly $553 million). However, not all these tokens entered the market.
The net amount released was reduced to 300 million XRP, or approximately $830 million, after 700 million XRP was returned to escrow. This mechanism isn’t new; it was introduced by Ripple to improve transparency and predictability of the XRP supply.
Each month, one billion tokens are unlocked, with some supporting institutional demand or the ecosystem, while the rest are securely re-locked.
XRP dropped back to $2.8 after losing 0.5 percent in a day, amid a broader correction that began last week. Not all market movements are driven by Ripple’s actions; the industry overall is declining.
Recent market activity shows how XRP’s valuation interacts with Ripple’s regulatory progress. For example, in July 2025, XRP’s price jumped after the launch of the ProShares ETF and the announcement of a $500 million RLUSD partnership with BNY Mellon.
These events show how institutional partnerships and regulatory advances can create momentum, increasing demand through better utility and credibility.
This is reflected by decreased on-chain activity and a cautious investor mood. The Crypto Fear and Greed Index has fallen to 39 points from 46, indicating less risk appetite and moving away from the “Greed” zone.
Regulatory changes have long influenced the cryptocurrency market, with each major event acting as a trigger for valuation shifts and increased adoption. The recent U.S. application from Ripple is one of the most significant regulatory tests for the company and its native token.
It submitted a request for a national bank charter on July 2, 2025, under the name “Ripple National Trust Bank.” XRP would allow Ripple to access the Federal Reserve’s payment infrastructure, supporting 24/7 stablecoin operations and boosting its institutional credibility.
However, regulatory scrutiny and resistance from traditional banking groups complicate the approval process, raising serious concerns about XRP’s future price path.
Historically, XRP’s price movements have primarily been driven by regulatory clarity. When the SEC v. Ripple case was settled and XRP was declared a non-security in secondary markets following Ripple’s lawsuit in October 2024, its price surged 20%, reaching a two-year high.
An example of how regulatory milestones can unlock institutional adoption, reduce legal uncertainty, and create liquidity pools that elevate valuation is the July 2025 approval of the ProShares XRP ETF, which resulted in a 7% price increase and saw XRP hit $3.4 amid $1.2 billion in ETF inflows.
Ripple’s application for a bank charter supports recent price activity. If approved, it could enable Ripple to operate under federal regulations, potentially alleviating concerns about past compliance issues, such as the $ 700,000 FinCEN fine and the $125 million SEC penalty.
Such a move hastens XRP’s integration into traditional finance, especially through Ripple’s On-Demand Liquidity (ODL).
Ripple faces obstacles, though the charter could enhance Ripple’s credibility. According to the National Community Reinvestment Coalition (NCRC) and the Independent Community Bankers of America (ICBA), a trust bank charter would let Ripple offer deposit-like services without the protections of traditional banks.
Ripple faces obstacles, though the charter could enhance Ripple’s credibility. According to the National Community Reinvestment Coalition (NCRC) and the Independent Community Bankers of America (ICBA), a trust bank charter would let Ripple offer deposit-like services without the protections of traditional banks.
Critics also question whether Ripple’s goal of “redefining the way money moves in the digital economy” matches the limited authority of a national trust bank.