Ripple’s first escrow unlock in 2026 released 1B XRP and a fake memo, exposing confusion over who controls the unlocks and how Ripple’s escrow really works.
Summary
- Ripple’s first escrow unlock in 2026 yielded 1 billion XRP for three transactions, while limiting price volatility relative to the unlock size.
- A sarcastic memo attached by a third-party initiator falsely suggested that Ripple was selling billions of XRP, fueling community backlash and confusion.
- The episode highlighted that any wallet can trigger scheduled releases and write memos, exposing widespread misunderstandings about Ripple’s escrow model.
Ripple (XRP) performed its first scheduled escrow unlock of 2026 on January 1, releasing 1 billion XRP tokens through three separate transactions that took place within seconds around midnight, according to blockchain data.
Ripple moves towards escrow release
The release distributed 500 million tokens across two major wallets in installments of 300 million and 200 million, with Ripple allocating the remaining 500 million tokens to itself. Both addresses now hold 1 billion tokens each, while they previously held 500 million tokens from previous unlocks, according to market observers who track the wallets.
Neither wallet has moved the newly unlocked tokens, and Ripple has not re-held any tokens as of publication. The company established the monthly escrow release program in 2017, where unused funds are typically returned to escrow after market evaluation.
Trading volumes increased after the unlock, although price volatility remained moderate relative to token volume, according to market data.
Controversy arose when transaction memos associated with all three unlocks contained messages that many community members initially believed to be from Ripple. The memo claims that Ripple has sold significant amounts in 2025 to fund acquisitions and that there are plans for larger sales in 2026 for stablecoin expansion and growth. The message contained sarcastic language directed at token holders.
According to later clarifications from community members and blockchain analysts, the memo did not come from Ripple. Under the escrow mechanism, each party can initiate releases when scheduled times arrive, with the initiating wallet verifying the contents of transaction memos. Ripple only acts as the designated recipient in these transactions, a structure that has been in place since 2017.
The incident exposed widespread misconceptions about escrow mechanisms among market participants, according to community leaders who issued statements after the event. Many participants mistakenly believed that Ripple controls released triggers and wrote all associated communications.
Community members then identified the source of the unauthorized memo and explained blockchain transaction procedures. The Crypto Basic published explanations to help distinguish legitimate communications from unauthorized messages, while several prominent figures in the cryptocurrency space called for better education about escrow systems.
The token unlock occurred after a period of bearish price movements in late 2025, although institutional adoption of Ripple technology had increased in the same time frame, according to industry reports.
