XRP News Today: Franklin Templeton's XRP ETF Opens Regulated Access to Digital Payments Infrastructure

Franklin Templeton (BEN) has launched the Franklin XRP ETF (XRPZ), a new exchange-traded fund offering U.S. investors regulated exposure to the XRP cryptocurrency, marking its latest expansion into digital assets. The fund, structured as a grantor trust holding XRP tokens, tracks the CME CF XRP-Dollar Reference Rate and is listed on NYSE Arca. This move follows Ripple Labs' August 2025 settlement with the U.S. Securities and Exchange Commission, which resolved a multi-year legal dispute over XRP's status as a security. The resolution cleared the way for XRP ETFs to enter the market, with Franklin Templeton joining competitors like Bitwise, Grayscale, and Canary Capital.

XRPZ joins Franklin Templeton's existing crypto ETF lineup, which includes products for Bitcoin (EZBC), Ethereum (EZET), and a diversified digital-asset fund (EZPZ). The firm positions XRP as a "foundational building block" in global settlement infrastructure, citing its role in facilitating low-cost, real-time cross-border payments via the XRP Ledger. Roger Bayston, head of digital assets at Franklin Templeton, emphasized the ETF's benefits: "regulated custody, daily transparency and liquidity without the operational complexity of holding the token directly". The fund's structure, with Coinbase Custody Trust as XRP custodian and BNY Mellon as administrator, aims to address institutional investor concerns around security and compliance.

The XRP ETF market is heating up, with multiple providers vying for share. Grayscale launched its XRP Trust ETF (GXRP) on the same day as XRPZ, while Bitwise's XRP ETF attracted $22 million in early trading. Franklin Templeton's XRPZ charges a 0.2% annual fee, with the first $5 billion in assets exempt until May 2026, making it one of the lowest-cost options. Analysts attribute the surge in demand to growing institutional interest in digital assets and regulatory clarity post-SEC settlement. XRP's price rose 2.3% in the 24 hours preceding the ETF's launch, trading at $2.11 per token, though it remains far below the $12.50 price target set by Standard Chartered's Geoffrey Kendrick for 2028.

Critics highlight risks inherent to XRP investments, including market volatility and regulatory uncertainties. The ETF's prospectus warns of potential losses due to rapid price swings, security threats to custodial accounts, and the lack of diversification. Additionally, XRP's performance is tied to Ripple's corporate health and broader adoption of the XRP Ledger in financial systems. Despite these challenges, Franklin Templeton's foray into XRP reflects a broader industry trend: asset managers are increasingly packaging digital assets into traditional investment vehicles to meet client demand.