Amazon holds 5 billion XRP? Ripple CTO: No evidence to support

Digital Asset Investor has reiterated rumors of a “secret” collaboration involving billions of XRP tokens between Ripple and Amazon, but Ripple's CTO David Schwartz recently clarified that even if the future token receivables are sold, the buyer cannot immediately control the locked XRP.

2015 Old Rumors Resurrected, Amazon 5 Billion XRP Rumor Origin

(Source: X)

The origin of the Amazon rumor can be traced back to 2015. A recent article published by digital asset investors referenced an old saying that suggested Amazon had reached an agreement with Ripple. It was claimed that the agreement was reached in 2015, granting Amazon ownership of 5 billion XRP, which would be locked until a partnership was announced in the future.

The reappearing screenshot is reportedly published by “Kendra Hill”, claiming that the partnership was intentionally kept secret to allow major investors to buy in early. This narrative aligns with the “insider information” and “institutional secret layout” patterns favored by the crypto community, and thus spread rapidly on social media. However, this speed of dissemination does not prove its authenticity.

Despite the rapid spread of this claim online, there is currently no official evidence to support it. Both Ripple and Amazon have not confirmed any association with the ownership or custody of XRP. Ripple's public custody transactions and disclosed information also show that it is unrelated to Amazon or any similar entities. From the perspective of blockchain transparency, if Amazon really held or had the right to obtain 5 billion XRP, such a large-scale transaction could not be completely hidden.

50 billion XRP was valued at around tens of millions of dollars in 2015, but at the current price of approximately $2.3, it is worth up to $11.5 billion. If Amazon really holds such a large position in XRP, it would make it the second-largest holder of XRP after Ripple itself. However, Amazon has never disclosed its cryptocurrency holdings in any financial reports or regulatory filings, which is inconsistent with its transparency obligations as a publicly traded company.

Analysis of the Operation Mechanism of the Ripple Custody System

Understanding Ripple's XRP custody system is crucial for evaluating this rumor. The company has locked 55 billion USD worth of XRP into several time-locked custody accounts, releasing 1 billion each month. Any unused XRP will automatically return to the end of the queue. The purpose of this system is to control market supply and assure investors that Ripple will not suddenly flood the market with large amounts of XRP.

These custody contracts are public and can be viewed on the XRP ledger. The monthly fund disbursements follow a transparent schedule, making it nearly impossible to hide large transfers or secret allocations. This level of transparency is at the core of the XRP custody system, designed to address the early crypto community's concerns about Ripple potentially dumping large amounts of XRP.

Five Key Features of the Ripple XRP Custody System

Total Locked Amount: 55 billion XRP (approximately 55% of total supply)

Release Mechanism: Automatically release 1 billion XRP every month

Reflow Design: Unused XRP automatically returns to the end of the queue

Public Transparency: All custody contracts can be queried on the XRP ledger.

Fixed Schedule: The release time is completely predictable, and large transfers cannot be hidden.

This design poses a technical challenge to the claim that “Amazon secretly holds 5 billion XRP.” If these 5 billion XRP really exist and belong to Amazon, they are either in Ripple's public custody system (but there is no record showing this), or in a third-party custodian (but lacking any proof documents). In either case, under the transparent environment of blockchain, it is difficult to completely hide such a large asset.

David Schwartz Clarifies Custody Rights Mechanism

Ripple's Chief Technology Officer David Schwartz recently explained how Ripple manages its custodial XRP. According to him, Ripple can sell the rights to receive tokens that will be released from the custodial accounts in the future, and can even sell the accounts into which tokens are deposited after the custodial process is complete. However, such sales do not allow buyers to immediately gain control over the locked XRP. These tokens remain unusable until the scheduled release date.

This mechanism is crucial for understanding the Amazon rumor. Even if theoretically Ripple sold the future rights to 5 billion XRP to Amazon in 2015, these XRP would still need to be released gradually according to a custody schedule, rather than being transferred all at once. This means that even if Amazon has these rights, it cannot immediately use these tokens, let alone trade them on the market or use them for any commercial purposes.

Schwartz's comments, while confirming that Ripple can sell future interests, do not prove that Amazon or any specific company holds such interests. Until Ripple or Amazon issues an official statement, this matter remains speculative. This clarification actually undermines the credibility of the rumors, as it suggests that even if the transaction exists, its nature is completely different from the rumors describing a “secret holding of 5 billion XRP.”

From a business logic perspective, Amazon's motivation to purchase $5 billion in XRP custodial rights is also unclear. In 2015, the price of XRP was very low, and even if Amazon was optimistic about its prospects, it could have directly bought the spot on the market instead of purchasing complex custodial rights. Furthermore, as the world's largest e-commerce and cloud computing company, Amazon's core business has no direct connection with the cross-border payment use case of XRP, which raises doubts about the strategic rationale for a large-scale investment in XRP.

Blockchain Transparency Exposes a Decade-Long Scam

So, does Amazon have any rights? Currently, there is no conclusive evidence that Amazon has any rights to Ripple's XRP custody accounts. This claim remains unverified, with no documents, company statements, or on-chain data to support it. Ripple's custody transactions continue to follow a predictable pattern, fully visible on the ledger.

One of the core advantages of blockchain technology is transparency. Every transaction on the XRP ledger is publicly accessible, and anyone can trace the source and destination of large transfers. If Amazon did indeed acquire 5 billion XRP or its custody rights in 2015, such a large-scale transaction would inevitably leave traces on the chain. However, to date, no blockchain analyst or data company has found any relevant evidence.

The post from digital asset investors raises an intriguing question about Ripple's flexibility in managing the custody of XRP. However, speculation should never replace verifiable evidence. Ripple's custody system is transparent, and any significant transactions leave a clear record on the blockchain. Currently, the so-called connection between Amazon and XRP remains one of the most enduring mysteries in the cryptocurrency space—unconfirmed and intriguing, it will be worth paying close attention to any disclosures in the future.

For XRP investors, the lesson from this rumor is that verifying the authenticity of information is more important than its rapid dissemination in the crypto market. While the story that “Amazon secretly holds 5 billion XRP” is enticing, narratives lacking supporting evidence only mislead investment decisions. Real opportunities often arise from verifiable fundamental improvements, rather than unconfirmed rumors.