Big Day for Ripple and XRP ETFs: Everything You Need to Know

TL;DR

• The launch of the REX-Osprey XRP ETF (XRPR), described as a “spot ETF with extras,” has been among the most talked-about topics in the crypto community recently.
• Ripple also teamed up with Franklin Templeton and DBS Bank, enabling trading between its RLUSD stablecoin and Franklin’s tokenized money market fund sgBENJI.

Breaking News Today

Ripple has taken center stage lately, mainly due to the developments on the ETF front. As CryptoPotato reported, the REX-Osprey XRP exchange-traded fund (under the ticker XRPR) is scheduled for launch today (September 18).

While the issuer described the investment vehicle as a spot ETF, some industry participants identified features that distinguish it from other such products. The popular Fox Business journalist Eleanor Terrett claimed it will operate as a “spot ETF with extras.”

“To my understanding, it’s a spot product in a ’40 Act wrapper that holds real XRP plus cash, Treasuries, and some derivatives. Basically a spot ETF with extras, and is more regulated than traditional spot products,” she said.

Contrary to the upcoming product, spot crypto ETFs that have already been approved in the United States are registered under the Securities Act of 1933, which governs commodity-based trusts. For a detailed breakdown of how REX-Osprey’s ETF compares to standard spot ETFs, please read our article here.

Grayscale has also displayed its intentions to introduce a product that tracks the performance of numerous cryptocurrencies, including XRP.

Earlier today, CEO Peter Mintzberg said the US Securities and Exchange Commission (SEC) has approved the Grayscale Digital Large Cap Fund (GDLC) for trading along with the Generic Listing Standards. He also added that the team is working “expeditiously” to launch the first multi-crypto asset ETP with BTC, ETH, XRP, SOL, and ADA as underlying assets. 

The GDLC is specifically designed to give investors exposure to some of the biggest cryptocurrencies, without requiring them to buy and store the coins themselves directly. It will track the CoinDesk Large Cap Select Index and will operate with daily cash creation and redemption of 10,000-share baskets.

Ripple’s Prestigious Partnership

In addition to the breaking ETF news, the company shook hands with the global investment company Franklin Templeton (which has over $1.6 trillion in assets under management) and the leading bank in Singapore, DBS Bank.

According to the signed memorandum of understanding (MoU), the financial institution will list sgBENJ and RLUSD. The former is a tokenized version of Franklin Templeton’s US dollar money market fund, while the latter is Ripple’s stablecoin, which is pegged to the greenback.

“With this setup, eligible DBS clients can trade RLUSD for sgBENJI tokens, enabling them to rebalance their portfolios into a relatively stable asset 24/7 and within minutes, while earning yield during periods of volatility,” the official announcement reads.

In the next phase of the collaboration, the Singaporean bank plans to explore helping clients unlock liquidity by using their sgBENJI tokens as collateral.

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