Ripple CEO "No Reason to Harm the Market"...Speaks Out on XRP Escrow Controversy

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Ripple CEO Brad Garlinghouse once again asserted the legitimacy of asset management through the XRP escrow system.

According to a report by U.Today, a virtual asset media outlet, on April 29 (local time), Garlinghouse explained in a recent interview that the escrow mechanism, which releases 1 billion XRP each month, is a key device that enhances market predictability. Garlinghouse added that Ripple's possession of a large amount of XRP actually demonstrates the company's strong commitment to the long-term success of the ecosystem.

He firmly dismissed concerns about market manipulation due to Ripple's large holdings, which some investors have raised. Garlinghouse emphasized, "Ripple is the largest stakeholder in the XRP ecosystem, and there is absolutely no reason for us to engage in activities that would harm the market." Garlinghouse clarified that the supply is systematically adjusted through the process of re-locking a significant portion of the XRP released from escrow.

Currently, Ripple operates by re-locking unused XRP from the 1 billion XRP released from escrow at the beginning of each month into new escrow contracts. This method prevents drastic fluctuations in XRP supply and helps ensure price rigidity. Garlinghouse predicted that Ripple's strategy serves as a key factor in building trust among institutional investors and will be an important foundation for expanding cross-border payment solutions in the future.

Garlinghouse expressed confidence that Ripple's transparent asset management, along with the technical superiority of the XRP Ledger, will ultimately increase the chances of winning the lawsuit. Ripple has focused on proving the legality of its asset sales methods and escrow system even during the ongoing lawsuit with the U.S. Securities and Exchange Commission. Market participants expect these remarks to stabilize the sentiment of XRP investors amidst regulatory uncertainty.

Ripple's asset management strategy is considered one of the most transparent cases in the virtual asset industry and serves as a pillar supporting stable market growth. Garlinghouse plans to continue strengthening communication with ecosystem members and dedicating himself to expanding the practical utility of XRP.

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