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Ripple Channels XRP Capital Into Real Businesses: Exec

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Ripple Channels XRP Capital Into Real Businesses: Exec

TLDR

  • Franklin Templeton’s Head of Digital Assets Roger Bayston said Ripple is redeploying XRP capital into operating businesses.
  • Bayston stated that Ripple has committed about $3 billion to expand custody, liquidity, treasury, and brokerage services.
  • He explained that XRP is moving beyond speculation and supporting financial infrastructure.
  • Bayston said Franklin Templeton supports a multi-chain strategy instead of launching its own blockchain.
  • He described blockchains as “digital nation-states” that evolve at different speeds.

Franklin Templeton’s Head of Digital Assets Roger Bayston said Ripple is redirecting accumulated XRP capital into operating businesses. He shared the remarks during the Thinking Crypto podcast with Tony Edward. Bayston said the company now focuses on infrastructure that supports real financial activity.

Ripple Deploys Capital to Expand XRP Infrastructure

Bayston said early blockchain networks built large capital reserves during previous market cycles. However, he explained that the next phase requires those networks to deploy resources into operating businesses. He pointed to Ripple and said it has “fantastic plans” to redeploy capital generated through XRP into infrastructure and services.

He said Ripple has committed about $3 billion to expand custody, liquidity, treasury management, and brokerage services. He explained that the company uses XRP-linked resources to finance this expansion. He added that this strategy supports broader institutional use and strengthens the XRP ecosystem.

Bayston stated that XRP now operates beyond market speculation and supports business infrastructure. He said the company channels accumulated capital into platforms that serve financial institutions. He noted that scale around the network will determine long-term utility.

Multi-Chain Strategy and Tokenization Growth

Bayston said Franklin Templeton will not launch a proprietary blockchain network. Instead, he explained that the firm supports a multi-chain structure across public networks. He described blockchains as “digital nation-states” that evolve at different speeds and serve different purposes.

He contrasted this approach with firms like Coinbase and Robinhood that operate closed ecosystems. He said Franklin Templeton prefers access across networks rather than control over a single chain. He added that this framework allows participation as each network develops.

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Bayston said institutional investors continue adapting to crypto market structures. He explained that platforms now combine custody, trading, and infrastructure into unified systems. He said this shift changes how institutions access and distribute financial products.

He cited Binance, Kraken, and OKX as examples of integrated platforms serving millions of wallets. He called this structure the “wallet ecosystem” that delivers products directly on-chain. He said Franklin Templeton views these platforms as distribution channels.

Bayston said tokenization efforts now extend beyond digital assets. He confirmed that Franklin Templeton manages about $1.6 trillion in assets. He stated that the firm already operates tokenized money market funds.

He said the firm plans to expand tokenization into real estate, commodities, and securities. He explained that these assets retain their structure but move into digital form. He noted that networks such as the XRP Ledger could support liquidity and settlement for these assets.

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Bayston said blockchain networks with capital and operational strategy will continue evolving. He stated that Ripple currently uses its XRP-linked capital base to build financial infrastructure. He reiterated these points during the Thinking Crypto podcast interview.

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Crypto World

Stablecoins Do Not Threaten Banking Just Yet: Analyst

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Stablecoins Do Not Threaten Banking Just Yet: Analyst

The impact of stablecoins on the banking sector appears “limited” at the current phase of the adoption cycle, but banks could face increasing competition and an erosion of market share as the stablecoin sector and tokenized real-world assets (RWAs) grow in market capitalization. 

“So far, the use of stablecoins remains limited, but their market capitalization exceeded $300 billion at the end of last year,” Abhi Srivastava, associate vice president of Moody’s Investors Service Digital Economy Group, told Cointelegraph.

The stablecoin market cap has surged past $300 billion. Source: RWA.xyz

The role of stablecoins in payments, cross-border commerce and onchain finance is “expanding,” despite their currently limited role, Srivastava said, adding that existing payment systems in the US are already “fast, low-cost and trusted.” He said:

“For the banking sector, at this stage, disruption risk appears limited. In the near term, US rules that prohibit stablecoins from paying yield mean they are unlikely to replace traditional deposits at scale domestically.”

However, over time, growing adoption of stablecoins and tokenized RWAs, traditional or physical financial assets represented on a blockchain by a token, could place “pressure” on the banking sector, leading to deposit outflows and reduced lending capacity, he said.

Stablecoin regulatory policy has become a hot-button issue among crypto industry executives and those in the banking sector, with fears that yield-bearing stablecoins could erode banking market share proving to be a stumbling block for the CLARITY crypto market structure bill in Congress. 

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Related: Stablecoins behave like FX markets as liquidity splits: Eco CEO

CLARITY Act stalled, as banks fight yield-bearing stablecoins

The Digital Asset Market Clarity Act of 2025, also known as the CLARITY Act, is a comprehensive crypto market regulatory framework that establishes an asset taxonomy, regulatory jurisdiction and oversight over the crypto markets.

The CLARITY crypto market structure bill. Source: US Congress

It is now stalled in Congress after a group of crypto industry companies, led by cryptocurrency exchange Coinbase, publicly stated opposition to earlier drafts of the bill.

A lack of legal protections for open-source software developers and a prohibition on yield-bearing stablecoins were among some of the most contentious issues cited by crypto industry opponents of the legislation.

Several attempts have been made by US lawmakers and the White House to negotiate a bill acceptable to both the crypto industry and the bank lobby.

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Earlier this month, North Carolina Senator Thom Tillis said he plans to release an updated draft bill proposal that would be acceptable to both sides; however, the bill has reportedly received pushback, according to Politico, and has yet to be publicly released. 

However, other crypto industry executives and market analysts have warned that if the CLARITY Act fails to pass, it could open the crypto industry up to future regulatory crackdowns by hostile lawmakers and officials.

Magazine: Stablecoins will see explosive growth in 2025 as world embraces asset class