Banks Boost XRP Holdings as Exchange Supply Hits Multi-Year Low

Financial institutions are increasingly investing in XRP through investment products as its supply on exchanges declines. According to recent reports, Italy's largest bank, Intesa Sanpaolo, disclosed ownership of 712,000 shares of the Grayscale XRP Trust in its latest SEC Form 13F filing.

The investment is worth around $18 million, representing about 6% to 7% of the bank's digital asset portfolio. Several other financial firms, including Goldman Sachs, Morgan Stanley, Millennium, and Citadel, have also reported XRP exposure through exchange-traded products.

Market data from Glassnode shows that XRP reserves across top exchanges have fallen from around 4 billion to approximately 1.6-1.7 billion XRP. Additionally, withdrawals from exchanges reached a five-year high, indicating investors are moving their holdings into private wallets.