"Coinbase reduces its XRP holdings by 40%... Interpreted as restructuring wallet architecture"
Summary
- It has been reported that Coinbase withdrew about 40% of its XRP holdings from cold wallets.
- This move is interpreted as likely part of a custodial structure reorganization or change in operational strategy, rather than simply a sale.
- Some XRP was transferred to hot wallets and custody wallets, seen as a measure to prepare for market volatility or liquidity requirements.
Coinbase, one of the major cryptocurrency exchanges in the United States, has reportedly moved about 40% of its held XRP assets.
According to U.Today, a cryptocurrency-focused media outlet, Coinbase recently withdrew approximately 40% of its 9.7 million XRP holdings from cold wallets. Of its original 52 cold wallets, only 35 still maintain a balance, with most of the remaining wallets now nearly empty.
The market interprets this move not simply as a sale or outflow, but rather as a restructuring of custodial architecture or a shift in operational strategy.
The outlet also reported that some XRP was transferred to Coinbase hot wallets, with the rest suspected to have been moved to wallets associated with Bitstamp or BitGo, both linked to Ripple's On-Demand Liquidity (ODL) infrastructure.
Meanwhile, some analysts point out that this transfer coincides with an increased use of XRP as collateral for derivatives trading. U.Today commented, "This withdrawal is likely not a panic-driven response, but part of preparations for future market volatility or liquidity needs."
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.
