Crypto Lawyer Says XRP’s Biggest Strength Is Its Escrow System

Crypto lawyer Bill Morgan thinks XRP’s escrow mechanism is its killer feature. Get that right, he says, and everything else is just a bonus.

Morgan argues Ripple’s escrow setup on the XRP Ledger was a smart move from day one. It stabilized the price and showed the market Ripple would handle its massive XRP hoard responsibly. Not just talk — real on-chain proof.

The numbers back him up. XRPScan shows roughly 32.4 billion XRP currently locked in escrow, with about 67.5 billion in circulation. That’s a lot of coins off the table.

But the escrow balance is shrinking. Ripple unlocks 1 billion tokens every month and doesn’t re-lock about 300 million of them. A year ago, escrow held nearly 36% of total supply. Now it’s below 32.5%. Morgan predicts it’ll drop under 29% by next July if the trend sticks.

On the technical side, the fixCleanup3_2_0 amendment is still in voting with 40% consensus. Needs 80% to activate. It bundles bug fixes for Single Asset Vaults, the Lending Protocol, the permissioned DEX, Multi-Purpose Tokens, and permissioned domains.

Meanwhile, nearly a million agent transactions have settled through the XRP Ledger’s x402 facilitator. That’s a separate milestone, but it shows the network is being used for more than just holding.