Speculation is spreading across social media that the U.S. government might take Ripple’s XRP escrow and use it for the country’s financial reserves. The rumor started soon after Ripple unlocked 1 billion XRP from escrow in June 2025.
Crypto influencers John Squire and Pumpius were the first to amplify the rumor. They both tweeted on X with people suggesting that XRP might eventually be added to the U.S crypto reserve.
The released XRP, which was distributed in three tranches of 500 million, 300 million, and 200 million tokens, is valued at over $2.2 billion at current market prices.
Even though Ripple unlocks XRP from escrow regularly, the timing of this release made people wonder if the U.S. government might be interested in it.
The XRP escrow system was designed by Ripple to manage the token’s supply and ensure market stability. Usually, about 1 billion XRP is unlocked monthly, with any unused amount returned to escrow.
This system is meant to keep the XRP market steady and help people trust its liquidity. Since the escrow holds a significant portion of XRP’s total supply, some think the U.S. might see it as a strategic asset for future financial systems or cross-border payment systems. However, Attorney Bill Morgan shut down the rumor with a clear answer: “No, it won’t.”
At the same time, there are also rumors that the Federal Reserve is using XRP in its new payment service called FedNow. Some users online said it’s already happening. But there is no official word from the Federal Reserve to confirm it.
Although Ripple’s blockchain has been integrated into Volante Technologies, a partner in Fednow pilot program, for cross-border settlement solutions, there is no official confirmation has been made that XRP itself is in use. The team is working on XRP ledger and has no direct connection to the XRP cryptocurrency.
Adding fuel to the fire, earlier this year, President Donald Trump talked about possibly creating a national crypto reserve that might include altcoins like XRP, Solana (SOL), and Cardano (ADA). However, only a reserve that focuses on Bitcoin has been created so far.
On top of that, Ripple’s long legal fight with the SEC might end soon, and XRP’s regulatory status is getting clearer. That has made people even more curious.
Also Read: Ripple SEC Lawsuit Verdict Won’t Wait Until August, Here’s the Timeline
