HashKey Capital Launches Asia's First Regulated XRP Tracker Fund

HashKey Capital has introduced Asia's first regulated XRP Tracker Fund, a significant milestone in the cryptocurrency investment landscape. This fund, supported by Ripple, offers institutional investors a regulated means to gain exposure to XRP without the necessity of directly holding or trading the cryptocurrency. The XRP Tracker Fund is designed to closely mirror the performance of XRP using CF Benchmarks as its reference index, providing monthly subscriptions and redemptions through either cash or in-kind contributions.

Vivien Wong, Partner, Liquid Funds at HashKey Capital, emphasized the innovative aspects of XRP, which is utilized by global enterprises for transactions, tokenization, and value storage. The fund aims to streamline access to XRP, addressing the increasing demand for investment opportunities in top-tier digital assets. XRP's advantages in cross-border payments, faster and more cost-effective transactions compared to traditional systems, and its support for the tokenization of real-world assets through the XRP Ledger (XRPL) make it an appealing choice for institutional investors.

This initiative marks HashKey Capital's third crypto tracking product, following previous Bitcoin (BTC) and Ethereum (ETH) funds launched with Bosera. If regulatory approval is secured, the XRP Tracker Fund could potentially evolve into an exchange-traded fund (ETF) within the next one to two years. The collaboration between HashKey Capital and Ripple extends beyond this fund, with plans to develop DeFi solutions for cross-border payments, asset tokenization projects, and potentially a money market fund on XRPL.

The partnership leverages HashKey Capital's extensive network of investors, regulators, and financial institutions in Asia, combined with Ripple's expertise in blockchain and digital payments. This collaboration is expected to support broader adoption of enterprise blockchain solutions and enhance financial infrastructure. Fiona Murray, managing director of APAC at Ripple, noted the increasing demand from institutional investors for regulated crypto products, positioning this fund as a significant step toward meeting that demand in Asia.

The launch of the XRP Tracker Fund comes at a critical juncture, following the resolution of the four-year legal battle between Ripple and the Securities and Exchange Commission (SEC). With Ripple agreeing to pay a $50 million fine, the path for XRP ETFs in the U.S. appears to be clearing, potentially paving the way for similar products in other regions. This development underscores the growing acceptance and integration of cryptocurrencies into mainstream financial markets, offering institutional investors a compliant and regulated avenue to engage with digital assets.

This move reflects growing confidence in XRP’s role for cross-border payments and asset tokenization. That helps explain why HashKey Capital, which previously launched Bitcoin and Ethereum trackers, is now adding XRP – currently crypto’s third-largest token by market cap. For Ripple, this broadens XRP’s use case beyond just remittances, as institutional interest in XRP keeps rising, driven partly by clearer regulation and new products.

Additionally, HashKey and Ripple are reportedly exploring additional DeFi solutions, tokenized products, and even a money market fund (MMF) on the XRP Ledger. If approved by regulators, the tracker fund could evolve into a full-fledged exchange-traded fund (ETF) within the next 1–2 years.

This investment also fits into Ripple’s broader strategy: expanding product lines and strengthening institutional ties. CEO Brad Garlinghouse downplayed IPO talk, saying Ripple is focused on real-world use, mergers and acquisitions (M&A), and long-term ecosystem growth – not “Wall Street money.” Garlinghouse didn’t name specific targets, but he did confirm Ripple is looking at acquiring blockchain infrastructure firms, especially in finance. He believes the market is finally opening up for crypto players and expects lots of consolidation in the blockchain industry in 2025.