Coinbase, the premier cryptocurrency exchange in the US, is witnessing a significant and rapid decline in its XRP holdings held within cold storage wallets. This dramatic shift has drawn attention from on-chain analytics, prompting speculation about the forces driving such a substantial movement of assets.
The Shrinking XRP Reserves on Coinbase
On-chain data analyzed by @XRPwallets reveals a precipitous drop in Coinbase's XRP reserves. Once holding as much as 750 million XRP, the exchange's cold wallets reportedly held around 200 million XRP a week prior, and currently stand at a mere 132 million XRP. This amount is distributed across just eight cold wallets, each containing 16.5 million XRP, indicating a sustained and substantial outflow of the digital asset from the platform's custody.
BlackRock's Potential Influence
The drastic reduction in Coinbase's XRP stash is strongly linked to its high-profile collaboration with BlackRock, the world's largest asset manager. BlackRock has increasingly embraced cryptocurrency, launching successful spot Bitcoin and Ethereum ETFs. As part of this partnership, Coinbase facilitates direct crypto access for institutional clients of BlackRock's Aladdin platform. While Aladdin initially offered only Bitcoin, it is highly probable that its range of accessible crypto products has expanded to include other major assets like XRP, allowing BlackRock's institutional clientele to acquire significant amounts of XRP directly through this integrated channel, consequently drawing down Coinbase's reserves.
