Ripple,HashKey Capital Launch Asia's First XRP Tracker Fund

Ripple is making significant strides in the Asia market with the launch of a new XRP product, aimed at driving institutional adoption. This initiative is part of a partnership with HashKey Capital, which has introduced a fund to expand institutional access to the altcoin.

HashKey Capital announced the launch of Asia’s first XRP Tracker Fund, with Ripple as an early investor. This move is seen as a significant step in broadening institutional access to XRP. The asset manager highlighted that XRP is at the forefront of cross-border payments, thanks to Ripple’s payment services, enabling faster, cheaper, and more efficient transactions compared to traditional systems. Additionally, XRP is facilitating the tokenization of Real World Assets (RWAs) on its native blockchain, the XRP Ledger (XRPL).

HashKey Capital noted that financial institutions and enterprises worldwide are already utilizing XRP. The XRP Tracker Fund is the firm’s third tracker fund, following its Bitcoin and Ethereum exchange-traded funds (ETFs). There is also a possibility of converting the fund into an ETF within the next one to two years, subject to regulatory approval, which would further broaden institutional access.

Beyond the XRP Tracker Fund, HashKey Capital and Ripple are exploring new investment products, cross-border DeFi solutions, and tokenization. This includes the potential launch of a money market fund (MMF) on the XRPL. Ripple will seed the initial investment for the tracker fund, marking a deepening collaboration between the two leaders in the blockchain space. The goal is to bring more institutional capital into regulated XRP products and the broader digital asset ecosystem.

Ripple’s recent acquisition of prime broker Hidden Road for $1.25 billion is another significant move to boost XRP’s adoption. This acquisition aims to enhance the utility of XRP and the RLUSD, positioning Ripple to make its mark in both the traditional finance (TradFi) and decentralized finance (DeFi) spaces.

There have been allegations that the Federal Reserve may use XRP to power the blockchain component of their FedNow payment system, following rumored meetings with Ripple. However, the Fed has not made any official statement on this development. With the lawsuit against the US SEC nearly resolved, financial institutions, especially US banks, are more likely to adopt Ripple’s payment service, which is facilitated by XRP.