Here’s How the US Government Could Take Over Ripple’s XRP Escrow for Reserve Purposes

Vet, a prominent XRPL dUNL Validator, has explained how the U.S. government could take control of the XRP tokens in the Ripple escrow.

According to him, this could happen without needing to wait for the typical escrow unlock process. Notably, this revelation comes amid official confirmation from U.S. President Donald Trump that the country would establish a crypto asset reserve with XRP and other tokens.

As XRP enthusiasts celebrate the news, some are speculating on how the government could establish the proposed reserve using the XRP tokens Ripple holds in escrow. Amid this, XRPL Validator Vet suggests a straightforward route for this process to occur.

In a tweet, Vet proposed that Ripple could transfer its escrow ownership to the U.S. government or any other entity via a single transaction. According to him, by setting the regular key of the XRP accounts holding the escrowed funds to the account of the U.S. government, Ripple could effectively grant full control over the escrowed assets.

He emphasized that the process is not complex and could all be completed in a single XRPL transaction.

Ripple Could Give up $105B in XRP Using This Method

Meanwhile, Mayukha Vadari, Senior Software Engineer at RippleX, remarked that this method wouldn’t work for partial transfers. Vadari stressed that it’s an all-or-nothing solution.

This essentially means Ripple would have to transfer the entire 37.7 billion XRP tokens ($105 billion) in escrow, or the method wouldn’t be effective.

Vet replied, confirming Vadari’s point. He noted that each account could only be “transferred” to one address. However, he added that many accounts exist, rather than a single account holding multiple escrows.

Correct, every account could only be “transferred” to one address. But there are many accounts out there, instead of one account with many escrows.

— Vet (@Vet_X0) March 3, 2025

Other community members sought clarification on whether such a transaction would be public or occur behind the scenes. Vet responded that because XRP transactions are public, it would be possible to track the hashes of such a transfer if it were to happen.

However, some commentators, including Vet himself, expressed doubts about whether such a transfer would ever occur. The pessimism stems from the enormous value of Ripple’s XRP in escrow—worth over $100 billion.

Some commenters likened the scenario to XRP super whales voluntarily giving up such significant wealth. “It would be a historic philanthropic gesture,” one commenter said. Meanwhile, they also cautioned, saying, “That’s not how people typically behave.”

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