XRP Targets DeFi Expansion, Ignores Mechanics

What to Know:

• SBI Ripple Asia partners with Doppler Finance to explore XRP yield infrastructure and real-world asset (RWA) tokenization on the XRP Ledger (XRPL).
• SBI Digital Markets will act as the institutional custodian, emphasizing regulated custody for institutional adoption.
• The initiative aims to expand institutional access to on-chain products through compliance-aligned design, enhancing XRPL’s DeFi footprint.

SBI Ripple Asia has partnered with Doppler Finance to explore XRP-based yield infrastructure and real-world asset tokenization on the XRP Ledger (XRPL). This collaboration marks SBI Ripple Asia’s first partnership with an XRPL-native protocol, aiming to create regulated XRP yield rails for institutional adoption. SBI Digital Markets will serve as the institutional custodian with segregated custody, reinforcing compliance.

The partnership focuses on making XRP more “productive” by routing it into yield sources while maintaining assets within a regulated custody environment. This shifts the focus from on-chain staking mechanics to balance-sheet-friendly rails, including custody segregation, eligibility controls, disclosures, and return stream reporting. This approach addresses the current market context where XRPL’s DeFi footprint is relatively small compared to Ethereum-style venues.

XRPL currently has $64.4 million in total value locked (TVL) and $347 million in stablecoin market cap. RWA.xyz lists $212 million in distributed asset value and $239 million in represented asset value on XRPL. The partnership between SBI Ripple Asia and Doppler Finance aims to capitalize on these metrics, potentially scaling quickly relative to existing XRPL baselines by routing a fraction of the circulating XRP supply into a yield wrapper.

There are several routes through which XRP could generate yield without native staking. These include tokenized cash-equivalent yield, where XRP exposure can be paired with tokenized T-bills or money-market funds, and credit primitives on XRPL itself. Ripple has already been seeding the first option through partners, including tokenized treasury products that can mint and redeem using RLUSD.

Regulated custody is a critical component of this initiative, acting as the product’s distribution channel and control plane to determine which investors can participate under what disclosure regime. The timing also aligns with broader tokenization forecasts and payments demand, with projections estimating tokenized RWA values reaching $9.4 trillion by 2030 and $18.9 trillion by 2033. This convergence of tokenized cash, settlement stablecoins, and yield-bearing cash equivalents underscores the potential market opportunity.

The collaboration between SBI Ripple Asia and Doppler Finance represents a strategic move to enhance XRP’s utility and institutional appeal by creating regulated yield opportunities and fostering RWA tokenization on the XRPL. The success of this initiative will depend on navigating regulatory considerations and effectively implementing on-ledger controls to meet institutional requirements.

Related: XRP Buy Signal? Analyst Targets Key Levels

Source: Original article