Franklin Templeton’s XRPZ ETF: A Key Player in Digital Asset Exposure

TLDR

• Franklin Templeton launched its XRPZ ETF, providing investors with easy exposure to XRP without having to hold the token directly.
• The XRPZ ETF aims to enhance Franklin Templeton’s digital asset offerings and strengthen its position in the blockchain space.
• The XRP Ledger’s proven utility and low transaction costs were highlighted as key factors driving the launch of the new ETF.
• XRPZ holds actual XRP as its underlying asset, with daily NAV calculations based on the CME CF reference rate.
• The ETF saw intense interest, attracting $62.59 million in inflows on its first day of trading.

Franklin Templeton, a leading global asset manager with over $1.7 trillion in assets under management, has officially launched its XRP ETF, XRPZ. The firm aims to offer traditional market participants an easy route to gain exposure to XRP, a key player in the digital payments sector. This move comes as the company strengthens its digital asset portfolio.

Franklin Templeton’s XRP ETF Launch

On Monday, Franklin Templeton launched XRPZ, an exchange-traded fund focused on XRP. The ETF allows investors to access XRP without holding the token directly. The move reflects Franklin’s confidence in the token’s role in global payments.

Franklin Templeton’s Head of Digital Assets, Roger Bayston, emphasized the importance of blockchain technology in modern finance. According to Bayston, XRP provides a “key incentive layer” for decentralized networks. He noted that XRP has proven utility, liquidity, and institutional-level transparency, making it a core asset in digital portfolios.

The firm believes that XRP is fundamental to the future of global settlement infrastructure. Bayston explained that XRP’s inclusion in the ETF strengthens Franklin Templeton’s position in the digital asset space. This reflects the growing demand for blockchain-based financial solutions.

XRP’s Role in Global Payments

Franklin Templeton highlighted the XRP Ledger’s (XRPL) critical role in payments, remittances, and tokenization. Launched in 2012, the XRP Ledger can handle thousands of transactions per second. Its fast, low-cost transactions make it suitable for international cross-currency settlements.

Banks, payment providers, and fintechs already use the XRP Ledger for real-world financial applications. The network’s energy-efficient design further enhances its appeal for large-scale financial use. This proven performance positions XRP as an integral part of the evolving global digital payments ecosystem.

David Mann, Head of ETF Product and Capital Markets at Franklin Templeton, reinforced the value of XRP’s role in settlement systems. He stated that XRP’s ability to offer seamless, low-cost cross-border payments makes it an essential digital asset. As the financial sector continues to digitize, XRP’s capabilities remain central to its success.

ETF Structure and Custody

XRPZ operates as a grantor trust, with actual XRP held as the underlying asset. The ETF’s daily net asset value (NAV) is calculated based on the CME CF reference rate. Coinbase acts as the custodian for XRP, ensuring secure custody, while Bank of New York Mellon handles administration and cash custody.

XRPZ joins Franklin Templeton’s expanding range of U.S. digital asset exchange-traded products (ETPs). The firm’s digital asset offerings include the Franklin Bitcoin ETF (EZBC), the Ethereum ETF (EZET), and the Crypto Index ETF (EZPZ). With the launch of XRPZ, Franklin Templeton further strengthens its presence in the growing digital asset space.

The ETF saw strong early interest, with $62.59 million in inflows on its first day. Other XRP ETFs also recorded impressive inflows, further underscoring investor demand for XRP exposure. By the end of Monday trading, XRP-focused ETFs had recorded $164 million in inflows.

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