BlackRock Overlooks XRP Ledger...New Tokenized Fund Chooses Ethereum, Causing Tension for XRP Ledger

▲ BlackRock, Ethereum (ETH)/ChatGPT Generated Image

BlackRock, the world's largest asset manager, chose Ethereum (ETH) instead of XRP Ledger for the launch of its new tokenized money market funds, creating a subtle crack in the institutional adoption expectations for XRP Ledger.

Bitcoinist reported on May 12 (local time) that BlackRock applied to the U.S. Securities and Exchange Commission (SEC) to launch two tokenized money market funds. The first product is a tokenized share of the BlackRock Select Treasury-Based Liquidity Fund (BSTBL), which will be launched on the Ethereum network. The second product, BlackRock Daily Reinvestment Stablecoin Reserve Vehicle (BRSRV), is planned to be launched on multiple blockchains, but whether XRP Ledger will be included was not specified.

BlackRock's new products target stablecoin issuers and stablecoin holders. BSTBL is structured to invest in cash, short-term U.S. Treasury securities, government bonds, and securities maturing within 93 days. BRSRV also primarily targets stablecoin issuers and holders using a self-custody approach. BlackRock already operates BUIDL, a tokenized U.S. Treasury fund, across multiple networks, and this fund holds the largest circulating supply on the Ethereum network.

The fact that XRP Ledger was not prominently included in BlackRock's new tokenized funds goes against the expectations of the XRP community. Bitcoinist reported that despite Ripple's RLUSD being one of the exit mechanisms for BUIDL, BlackRock has not yet expanded BUIDL to the XRP Ledger. BlackRock offers Bitcoin (BTC) spot ETFs and Ethereum spot ETFs but has stated that it has no plans to apply for an XRP spot ETF yet. Bloomberg analyst James Seyffart also believes that BlackRock is unlikely to apply for an XRP spot ETF anytime soon.

Nevertheless, the growth of tokenization on XRP Ledger remains evident. Citing RWA.xyz data, Bitcoinist reported that the total value of real-world asset tokenization on XRP Ledger recently increased by approximately 47% over the past 30 days, reaching $3.5 billion. During the same period, the total value of real-world asset tokenization on Ethereum decreased by 4% to $16.8 billion.

XRP Ledger is also performing well in terms of trading volume. The trading volume of tokenized U.S. Treasury bonds based on XRP Ledger exceeded $352 million this year, a fivefold increase from $70 million last year. Ondo Finance and Ripple recently completed their first cross-border tokenized U.S. Treasury settlement using Ondo's tokenized OUSG fund on the XRP Ledger.

BlackRock's primary choice of Ethereum for its new tokenized products puts pressure on the institutional adoption expectations for XRP Ledger. However, the increasing scale and trading volume of real-world asset tokenization on XRP Ledger are forming a separate growth axis. As institutional capital accelerates its entry into the tokenization market, Ethereum's first-mover advantage and XRP Ledger's rapid growth are making the competitive landscape of the real-world asset tokenization market even clearer.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*