**Why Ripple Is Leading the XRP Buyback Effort Instead of Using Its Escrow Balance**
*Written By: Sam Wisdom Raphael | Follow TheCryptoBasic*
Nietzbux, a well-known XRP community pundit, recently shared his theory on why Ripple has opted to spearhead efforts to buy XRP tokens through fundraising rather than tapping into its sizable escrow balance.
### Ripple’s Fundraising Move: What’s Behind It?
Bloomberg recently reported that Ripple is preparing to lead a fundraising round to raise up to $1 billion for purchasing XRP tokens. While Ripple has not officially confirmed this report, the news has already ignited excitement within the XRP community.
### Ripple Joins the Growing Trend of XRP Treasuries
This potential fundraising initiative builds on an emerging trend of XRP treasury establishment across various organizations. For instance, VivoPower raised $19 million earlier this month to expand its XRP treasury. Similarly, firms like Everything Blockchain and Trident Digital have announced plans to set up their own XRP treasuries.
Ripple’s interest in creating an XRP treasury aligns with speculations from industry experts, and such a move could significantly boost confidence in XRP. However, this raises a crucial question: if Ripple is indeed establishing a treasury, why not simply use XRP tokens from its existing escrow accounts, which currently hold about 35 billion XRP?
### Why Isn’t Ripple Using Its Escrowed XRP?
Nietzbux acknowledged that many community members have wondered the same. He proposed a speculative theory that might explain Ripple’s approach. According to some community pundits, Ripple may have pre-allocated large portions of its escrow holdings to institutional investors through private deals. This suggests that Ripple might not be the sole owner of the 35 billion XRP currently in escrow.
If this theory holds true, Ripple’s actual XRP holding could be less than the public assumes. Consequently, Ripple might prefer leading a fundraising effort to stock its proposed XRP treasury rather than using escrowed tokens that may already be committed to other parties.
### Contrasting Views and The Official Stance
It’s worth noting that the Bloomberg report mentioned Ripple would utilize some XRP from its escrow for the treasury. On the other hand, some commenters argue Ripple’s escrow balance is public and transparent, thus confirming its holdings.
Nietzbux counters this by suggesting that although Ripple may have sold a majority of the tokens to institutional clients, these tokens could still be stored in escrow on behalf of those clients. However, this remains speculative and unconfirmed.
### Community Excitement Mounts
Regardless of the true nature of Ripple’s escrow holdings, the anticipation around the proposed treasury is palpable. In July, Bitwise CEO Hunter Horsley speculated whether Ripple could pivot to become an XRP treasury firm within 12 months. Last November, Nietzbux himself questioned when Ripple would start buying back XRP to build a treasury—this may soon become a reality.
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### Disclaimer
This content is informational and should not be considered financial advice. The views expressed may include the author’s personal opinions and do not reflect The Crypto Basic’s stance. Readers are encouraged to conduct thorough research before making investment decisions. The Crypto Basic is not responsible for any financial losses.
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### About the Author
**Sam Wisdom Raphael** is a seasoned crypto news writer and journalist with five years of experience covering blockchain, DeFi, and cryptocurrency developments. His active engagement in the crypto community complements his expertise, allowing him to produce clear price analysis reports and explain technical blockchain concepts.
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https://thecryptobasic.com/2025/10/18/heres-why-ripple-is-buying-1b-in-xrp-instead-of-just-using-its-escrow/?utm_source=rss&utm_medium=rss&utm_campaign=heres-why-ripple-is-buying-1b-in-xrp-instead-of-just-using-its-escrow
