The initiative aims to create regulated XRP yield rails for institutional adoption by routing XRP into yield sources while preserving custody segregation, compliance controls, disclosures, and a defined return stream rather than relying on native XRP staking.

The announcement includes context about SBI Digital Markets and the broader goal of enabling yield opportunities for institutions under rigorous regulatory and operational standards.

Projections suggest meaningful AUM and revenue if a portion of circulating XRP is routed into a yield wrapper, with estimated returns in the 0.1% to 5.0% range generating hundreds of millions in AUM and tens of millions in annual revenue under a regulated custody model.

The move aligns with growing interest in tokenized assets and blockchain-based yield products in Japan and Singapore, where regulatory clarity supports such initiatives.

SBI Ripple Asia and Doppler Finance have signed a memorandum of understanding to explore XRP-based yield infrastructure and real-world asset tokenization on the XRP Ledger, marking SBI Ripple Asia’s first partnership with an XRPL-native protocol and naming SBI Digital Markets as the institutional custodian.

The collaboration seeks to accelerate adoption of transparent, compliant, yield-generating XRP products and bridge traditional finance with on-chain ecosystems.

Rox, the Head of Institutions at Doppler Finance, emphasizes expanding XRP’s role as a productive, yield-bearing asset and setting institutional standards for XRPL.

Next steps move from exploration to product design, defining eligible investor scope, yield source mix, disclosure attestations, token form factors, redemption mechanics, and on-ledger controls in production.

Regulatory considerations are central, including IOSCO tokenization risk warnings, with emphasis on transparency around ownership, redemption, settlement, liquidity, custody reporting, and on-ledger controls; XRPL’s governance features like Multi-Purpose Tokens and Deep Freeze support compliant tokenization workflows.

Possible yield scenarios include tokenized cash-equivalents and credit primitives on XRPL, such as an XLS-66d lending framework, with outcomes dependent on external yield streams since XRP is not native staking.

The discussion centers on expanding institutional access to on-chain products through compliant design, noting XRPL DeFi activity is smaller than Ethereum but shows growth in stablecoins and tokenization.

XRPL’s current TVL and stablecoin metrics are modest relative to Ethereum, but tokenized RWA markets on XRPL are expanding, with tokenized cash equivalents and potential XRPL-native lending primitives being explored as yield sources.