XRPL Escrow Explained
An escrow on the XRP Ledger locks XRP, or a token, until a set time or a condition, and nobody can touch it until then: the ledger itself holds it. The best-known escrow is Ripple’s, and its balance shows how much XRP has really left it.
How an escrow works
- A release time (FinishAfter): from then on anyone can release it, and it goes to the destination named when it was made.
- A cancel time (CancelAfter): from then on it can be cancelled, and the funds go back to the sender. Without one, it can never be cancelled.
- A condition, optional: a cryptographic lock that only the matching fulfillment opens, for payments that wait on something happening off the ledger.
Every escrow needs a release time or a condition, and a cancel time, if set, must come after the release time (rippled). Each one holds 0.2 XRP of its owner’s balance in reserve (xrpl.org).
Ripple’s escrow
In December 2017 Ripple locked 55 billion XRP in 55 escrows of 1 billion each, one maturing every month (Ripple). What Ripple does not use goes back into new escrows at the end of the queue, so the escrow empties far more slowly than a billion a month.
XRP leaving escrow moves to Ripple’s own accounts; what Ripple then sells or spends is a separate question. Where the rest of the supply sits: the rich list.
Escrow for tokens
Since 12 February 2026, escrows can also hold tokens, when the token’s issuer allows it: a trust-line token needs the issuer to switch on Allow Trust Line Locking, a multi-purpose token needs its Can Escrow setting, and an issuer cannot escrow its own token (rippled). That makes on-ledger vesting possible for a team’s tokens. An AMM pool’s LP tokens cannot be escrowed: only the pool’s account could allow it, and nobody can sign for that account.
Launching a token: how to launch on the XRP Ledger.
Questions
- Does Ripple sell 1 billion XRP every month?
- No. Up to 1 billion can leave escrow each month, but Ripple puts most of it back into new escrows. What actually left escrow for good was between 1.6B and 3.8B XRP a year since 2019, and leaving escrow is not the same as being sold.
- Can an escrow be cancelled early?
- No. An escrow can be cancelled only after its cancel time has passed, and only if it was given one; until then the XRP stays locked for everyone, including its owner.
- Can anyone create an escrow?
- Yes, any account, for XRP, and for a token whose issuer allows it. Each escrow holds 0.2 XRP of the owner’s balance in reserve until it is finished or cancelled.
- Who can release an escrow?
- Anyone, once the release time has passed; the XRP or tokens always go to the destination named when the escrow was made. An escrow with a condition also needs the matching fulfillment.