What happens to my XRP if the exchange goes bankrupt?

The full answer

What is known so far?

The records held for this page describe how XRP funds and a proposed crypto trust bank hold assets. They show who holds the XRP and in whose name. They do not show what a retail exchange customer receives if the exchange fails. That part of the answer is listed below as not yet found.

Where does XRP sit when a regulated custodian holds it?

Bitwise XRP ETF’s quarterly report for the period to March 31, 2026 says the fund’s XRP is held in a custody account in the name of the fund at Coinbase Custody Trust Company, LLC [1]. The same filing describes Coinbase Custody as a New York State limited liability trust company [1]. Canary XRP ETF’s report for the period to June 30, 2026 names Coinbase Custody Trust Company and BitGo Trust Company as its custodians and says they are responsible for safekeeping all of the fund’s XRP [2]. How holding a fund share differs from holding XRP directly is covered in whether an XRP ETF is the same as owning XRP.

Custody can also pass through more than one firm. Sullivan & Cromwell reported on May 9, 2025 that OCC Interpretive Letter 1184 lets US national banks outsource crypto custody and execution to third parties, including sub-custodians, subject to third-party risk management [4].

Is a crypto custodian covered by deposit insurance?

The only record in hand on this point is the OCC’s letter of December 12, 2025. It gives Ripple National Trust Bank preliminary conditional approval to offer crypto custody in a fiduciary capacity, and it states that the bank will not be an insured depository institution, a term the letter defines as a bank whose deposits are insured by the FDIC [3]. The letter says the bank’s custody services will be subject to fiduciary duties [3]. It also says final approval to open will not be granted until all preopening requirements are met, and that until then the OCC can modify, suspend or rescind the approval [3]. Coverage by CIPF, CDIC, FDIC and SIPC for crypto held on trading platforms is the subject of whether crypto is insured like a bank account.

How do I file a claim, and how long have past cases taken to pay out?

On July 30, 2026, CryptoSlate reported that FTX’s $900 million payout would begin that Friday, with creditors who cleared the June 16 requirements to be paid within three business days and a six-month deadline for allowed claim holders to complete provider onboarding or forfeit distribution rights. I could not find a source on claim filing procedures themselves as of October 2, 2026. The W002 evidence pack and the held fact records were searched. Anyone contacted by a firm offering to speed up or recover a bankruptcy claim for a fee will find the evidence on that pattern in crypto recovery scams.

How much did FTX, Celsius and QuadrigaCX customers get back, and when?

As of September 30, 2026, I could not find any court or trustee record for these three cases. The amounts, dates and the legal status of customers (owner or unsecured creditor) will be added once those records are fetched. XRP held with crypto lenders is covered on a separate page: what happened to XRP held with crypto lenders that collapsed.

How are losses from a bankrupt platform treated for tax?

As of September 30, 2026, I could not find any CRA or IRS source on this. General tax treatment of XRP is covered in whether you pay tax on XRP in Canada or the US.

What cuts against relying on custody structures?

The records in hand show custody structure and supervision, and the OCC letter itself shows the limits: the Ripple trust bank approval is conditional and can be rescinded before final approval, and the bank will not be FDIC-insured [3]. Canadian platform custody rules are covered on a separate page, what rules a Canadian crypto platform must follow to hold your XRP.