Coinbase’s Visible XRP Reserves Drop 83% to 165 Million; Could Indicate Institutional Reallocation or Supply Rotation

• Coinbase visible XRP fell ~83%

• Cold‑wallet count dropped from 52 to 10, each near 16.5M XRP

• Shift coincides with institutional flows, Aladdin integration and on‑demand liquidity use

Coinbase XRP reserves dropped 83% from 970M to 165M XRP; read the timeline, causes, and market impact — analysis and action points for traders and institutions.

What happened to Coinbase XRP reserves?

Coinbase XRP reserves visible on‑chain fell sharply from over 970 million XRP in June 2025 to about 165 million XRP by September 2025, representing an ~83% decline. Tracking data from XRPWallets shows cold‑wallet consolidation and redirected supply into institutional and liquidity channels as the primary drivers.

How did Coinbase’s cold wallets change?

In June the exchange had 52 cold addresses with allocations between 16.8M and 26.8M XRP each. By September that structure contracted to just 10 addresses, each clustered near 16.5M XRP. This uniform balance suggests scheduled drawdowns or coordinated reallocation rather than random retail withdrawals.

Specific on‑chain snapshots show Cold 210 at ~25,526,876 XRP and several others above 25M in early June. By September the per‑address balance commonly read 16,483,929 XRP or lower. The net movement equals a visible gap exceeding 800 million XRP over ~3 months.

Why did reserves fall — supply rotation and institutional flows?

There are two plausible explanations supported by timing and transaction patterns:

• Supply rotation: XRP appears to be moving into on‑demand liquidity corridors, exchange‑traded products and trust structures, reducing the tokens visible on Coinbase cold storage.
• Institutional channeling: The timeline overlaps Coinbase’s Aladdin integration (initially with Bitcoin). If XRP is routed into institutional custody or market‑making conduits, Coinbase cold balances would decline while institutional holdings rise.

Sources: tracking data attributed to XRPWallets and public statements from Coinbase about Aladdin integration (August 2025). These are mentioned here as plain text references for verification.

When did the largest movements occur?

Most movement occurred between early June and early September 2025. The initial snapshot (June) showed ~970M XRP; the September snapshot shows ~165M XRP. The most concentrated balance changes happened in July and August, consistent with summer trading and institutional onboarding phases.

What does this mean for XRP supply and markets?

Visible exchange supply is materially lower, which can tighten available liquidity on Coinbase specifically. Future supply will depend on Ripple escrow releases, corporate holdings and founder allocations. Market impact depends on whether redirected XRP is held in institutional custody, placed into liquidity services, or sold on secondary venues.

Frequently Asked Questions

How big was the drop in Coinbase’s XRP reserves?

The drop was approximately 83%, from about 970 million XRP in June 2025 to roughly 165 million XRP by September 2025, a reduction of over 800 million tokens in visible custody.

Is the reduction confirmed by Coinbase?

Coinbase has confirmed Aladdin integration activity (initially for Bitcoin) and public custody operations; the on‑chain shifts are visible in data tracked by XRPWallets and on‑chain explorers (mentioned as plain text sources).

Will this raise XRP’s price?

Reduced visible exchange supply can compress available liquidity and influence price, but actual market impact depends on whether shifted XRP is held securely in institutional accounts or released back into trading venues.

Key Takeaways

• Major visible decline: Coinbase visible XRP fell ~83% (970M → 165M).
• Cold‑wallet consolidation: 52 wallets reduced to 10, each near 16.5M XRP.
• Institutional reallocation: Movement aligns with liquidity corridors and institutional custody activity; future supply depends on Ripple escrow and corporate holdings.

Conclusion

This analysis shows a substantial, rapid reduction in Coinbase XRP reserves driven by cold‑wallet consolidation and likely institutional reallocation. Traders and institutions should monitor escrow schedules, custody announcements and on‑chain addresses to assess ongoing supply dynamics and market impact. For ongoing coverage, watch for updates from COINOTAG and on‑chain trackers such as XRPWallets (plain text reference).