Coinbase’s XRP Cold Storage Shrinks Nearly 73%, May Indicate Custodial Restructuring

• Coinbase reduced consolidated XRP cold storage by ~73% from June to August.

• Only 16 lower-tier wallets remain; many large addresses were emptied, split, or moved.

• Similar fragmentation is visible at BitGo and Bitstamp; Coinbase’s decline is the largest among major custodians.

Coinbase XRP reserves plunged ~73% since June, reshaping custody and supply dynamics. Read the breakdown and implications for XRP holders on COINOTAG.

Coinbase has reduced its XRP cold-storage reserves by nearly 73% since June, reshaping its custodial layout and reducing concentrated exchange-held supply.

What changed with Coinbase XRP reserves?

Coinbase XRP reserves were consolidated across 52 cold wallets in June and have been substantially reduced by late August. Blockchain analysis shows many large addresses were emptied, fragmented, or redistributed, leaving only 16 lower-tier wallets and a much smaller consolidated balance.

How large was the reduction and what does the data show?

On-chain records indicate Coinbase held around 970 million XRP in June. By late August, overall cold-storage holdings tied to Coinbase were reduced by roughly 73%. This movement came via emptying large wallets, splitting holdings into smaller operational addresses, or transfers off exchange custody.

Why might Coinbase restructure XRP cold storage now?

Custodial rebalancing, compliance adjustments, and aggregated client withdrawals can each explain parts of the movement. The scale and speed — a three-month, ~73% decline — suggest a deliberate operational reshuffle rather than only routine transfers.

Are other custodians showing similar behavior?

Yes. BitGo and Bitstamp show fragmentation of long-standing cold accounts into smaller operational wallets. However, plain-text on-chain comparisons indicate Coinbase’s reduction is the most pronounced among major U.S.-linked custodians over the same period.

When did this coincide with market levels for XRP?

The reduction aligns with XRP trading near $2.91, a recurring resistance level this year. Lower exchange balances can tighten available supply and influence price dynamics, although causation requires broader market context and additional data.

What should holders and market observers watch next?

• Monitor on-chain wallet activity and exchange balances via blockchain analytics tools (plain text references to on-chain analytics and blockchain trackers).
• Watch order book depth and withdrawal patterns on major platforms for supply-side signals.
• Track regulatory and custodial announcements from exchanges and custodians for official explanations.

Frequently Asked Questions

How much XRP did Coinbase hold in June versus now?

In June Coinbase managed approximately 970 million XRP across 52 cold wallets. By late August, that consolidated figure was reduced by about 73%, leaving only a fraction of the prior holdings in fewer lower-tier wallets.

Does a drop in exchange reserves mean price will rise?

Lower exchange reserves can signal tighter available supply, which may support price if demand remains constant. Price moves depend on demand, market liquidity, and macro conditions; reserve decline is one of several indicators.

Key Takeaways

• Major reduction: Coinbase cut consolidated XRP cold storage by ~73% since June.
• Custody reshuffle: Large wallets were emptied or split into smaller operational addresses.
• Market impact: Reduced exchange balances can affect available supply; watch order books and withdrawal flows.

Conclusion

Coinbase’s sharp reduction in XRP cold storage — from roughly 970 million tokens across 52 wallets to a far smaller, redistributed set — signals a material custodial shift. Market participants should monitor on-chain activity, exchange balances, and official custodial statements for further clarity. COINOTAG will update this story as verified details emerge.