Ripple teams up with SBI to create a billion-dollar XRP revenue stream

SBI Ripple Asia and Doppler Finance signed a memorandum of understanding on December 17 to explore XRP-based revenue infrastructure and RWA tokenization on XRPL. This is the first collaboration between SBI Ripple Asia and the native XRPL protocol, with SBI Digital Markets designated as the institutional custodian to implement segregated custody.

The Dilemma of XRP Not Being Stakable and Institutional-Level Solutions

A critical weakness of XRP is the lack of native staking functionality. Ethereum holders can stake ETH to earn approximately 3-5% annual yield, Solana staking yields around 7%, and even Cardano has a native staking mechanism. In contrast, XRP holders have no passive income sources other than waiting for price appreciation. This disadvantage is especially fatal in the eyes of institutional investors, who require stable cash flow and yield reporting.

Ripple and SBI’s solution is to “bypass on-chain mechanisms and directly provide yields.” This strategy shifts the product discussion focus from on-chain staking mechanisms to asset-liability friendly mechanisms: custodial segregation, eligibility control, information disclosure, and the generation and reporting of yield streams. Doppler institutional head Rox Park stated that the company will explore yield and tokenization infrastructure on XRPL. An SBI Ripple Asia spokesperson described this work as expanding institutional access to on-chain products through compliant design.

Three External Paths for XRP to Generate Yield

CeDeFi Strategy: Deposit XRP into custodial institutions, where a professional team conducts options trading, basis arbitrage, and other strategies to generate yield.

Tokenized Cash Equivalents: XRP exposure paired with tokenized treasury bills or money market funds to obtain low-risk fixed income.

Native XRPL Lending Protocols: If the XLS-66d proposal passes, XRPL will support native lending, though this is still under discussion on GitHub.

SBI Digital Markets Pte. Ltd. is a capital markets service provider licensed by the Monetary Authority of Singapore, offering custody services and capital market product trading. It is also listed as an exempt financial advisor, further strengthening the custody and compliance framework. This regulatory endorsement is crucial for institutional investors, as it ensures asset segregation, bankruptcy remoteness, and regulatory reporting standards aligned with traditional finance.

Mathematical Calculation of a Billion-Dollar Asset Management Scale

The circulating supply of XRP is approximately 60.49 billion, with a spot price close to $1.91. Even directing a small portion of the circulating supply into yield packaging can generate a nine-figure asset management scale. If 1% of circulating XRP (about 6.0491 billion XRP) enters yield products, it corresponds to approximately $11.4 billion in assets under management. At 5%, it would be $57.2 billion.

For companies capable of bundling these funds with custody, compliance, and reporting, the business incentive appears more like fee income. Using a range model, a total cost of 50-150 basis points on $11.4 billion in AUM implies annual revenue of approximately $5.7 million to $17.1 million. At a 5% penetration rate ($57.2 billion AUM), annual revenue could reach $28.6 million to $85.8 million.

The essence of this business model is “charging fees rather than holding tokens.” SBI and Doppler do not bear the risk of XRP price fluctuations but instead earn stable fees through custody, yield management, and compliance services. This model is highly attractive to traditional financial institutions because it aligns with their existing business logic and risk appetite.

However, implementing this model requires multiple prerequisites. First, regulatory clarity is essential; the legal status of tokenized products, tax treatment, and cross-border transfer rules must be clear. Second, technological maturity is needed; XRPL’s multi-purpose tokens, deep freeze mechanisms, and credential systems must move from proposals to production environments. Third, market education is necessary; institutional investors need to understand why XRP yield products are worth allocating to.

The Huge Gap Between XRPL and Ethereum

Currently, XRPL’s DeFi market share is minimal. According to DefiLlama data, XRPL’s total value locked (TVL) is only $64.4 million, with a stablecoin market cap of $347 million (up 13% in the past 7 days). RLUSD accounts for 78.90% of XRPL stablecoins, with DEX trading volume reaching $5.7 million in 24 hours.

The XRPL page on RWA.xyz shows a dispersed asset value of $212 million, representing an asset value of $239 million, with 50 RWAs. In comparison, Ethereum’s total RWA value exceeds $120 billion, with stablecoin market cap reaching $1.71 trillion. This scale gap highlights the importance of custodian-led capital wedges for XRPL’s growth path.

From another perspective, this lag also presents an opportunity. Ethereum’s DeFi ecosystem is highly mature and competitive, making it difficult for newcomers to gain market share. XRPL, on the other hand, is a relatively blank market. If SBI and Ripple succeed in creating institutional-grade products, they will face less competition. More importantly, XRPL’s positioning is fundamentally different from Ethereum. Ethereum pursues decentralization and permissionless access, while XRPL has been more oriented toward institutional applications and compliance-friendly design from the start.

Ripple and BCG released a tokenization report in 2022 predicting that tokenized RWA will reach $9.4 trillion by 2030 and $18.9 trillion by 2033, with a compound annual growth rate of 53%. McKinsey pointed out that tokenization in financial services is moving from pilot phases to scaling stages. These macro forecasts provide a market foundation for XRPL’s institutional-level strategy.

However, the International Organization of Securities Commissions (IOSCO) warns that tokenization may introduce new risks or exacerbate existing ones, including concerns about market integrity and investor protection. These concerns directly relate to how to evaluate institutional XRP yield packaging, including the assets legally owned by token holders, redemption and settlement processes, yield auditability, and liquidity mismatches.

Currently, the announcement commits all parties to explore according to the memorandum of understanding. Next, several milestones remain for product design: scope of qualified investors, yield source composition, disclosure and proof, token form, redemption mechanisms, and how ledger control will be practically used in production. From exploration to productization, the road is still long, but the direction is clear: Ripple is transforming XRP from a retail speculation target into an institutional-grade yield asset.