Banks Boost XRP Holdings as Institutional Infrastructure Expands

Large financial institutions are increasing their exposure to XRP through investment products as the token's supply on cryptocurrency exchanges continues to decline. According to a recent report, several major banks, including Goldman Sachs and Morgan Stanley, have reported XRP exposure through exchange-traded funds (ETFs). This is because ETFs simplify custody, compliance, accounting, and regulatory requirements for institutions.

Italy's largest bank, Intesa Sanpaolo, has 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 based on current market prices. Intesa Sanpaolo holds nearly $235 million in crypto-related investments, with XRP representing about 6% to 7% of its digital asset portfolio.

The supply of XRP on cryptocurrency exchanges has fallen from around 4 billion XRP to approximately 1.6-1.7 billion XRP, according to market data from Glassnode. This indicates that more investors are moving their holdings into private wallets rather than keeping them on trading platforms. The report also highlights U.S. spot XRP ETFs recording nearly $6 million in net inflows on July 30, with Bitwise and Franklin Templeton leading the day's inflows.