
Structured Products Gain Ground in Asia
Nicolas Rigois, Global Head, Capital Market Products & Solutions; Country Head Singapore, Standard Chartered discusses the rise of structured products in wealth management. (Source: Bloomberg)
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Asset manager Guggenheim recently tapped the XRP Ledger to issue digital commercial paper, a fixed-income asset backed by U.S. Treasuries. The XRP Ledger currently accounts for a small percentage of tokenized real-world assets -- which are forecast to hit $19 trillion by 2033 -- but the addition of tokenized debt to the platform is a positive development that could lead to more transactions on the network. However, not many financial institutions use XRP as a bridge currency, and I doubt that will change. Price volatility makes cryptocurrency a risky way to move money. Ripple has addressed that problem by creating a stablecoin called Ripple USD. Yet, while payments made in Ripple USD incur transaction fees denominated in XRP, those fees are small and the incremental demand for the cryptocurrency is negligible. For that reason, financial institutions using Ripple Payments are unlikely to be a material catalyst for XRP. The Chicago Mercantile Exchange, the largest derivatives marketplace in the United States, introduced XRP futures trading in May. Meanwhile, a few asset managers have rolled out XRP futures ETFs. Both create new ways for investors to trade XRP, but the most important potential catalyst is the pending approval of several applications for spot XRP ETFs. Spot XRP ETFs would own the crytocurrency and track its price, rather than trading futures contracts. In other words, spot XRP ETFs would give investors direct exposure to the cryptocurrency through traditional brokerage accounts, without the high fees associated with cryptocurrency exchanges. By reducing friction, spot ETFs could unlock demand among retail and institutional investors. Indeed, Bitcoin's price has skyrocketed 136% since spot Bitcoin ETFs were approved in January 2024. I think approval of spot XRP ETFs could lead to similar price appreciation, such that XRP could potentially overtake Ethereum by 2028. 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See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Trevor Jennewine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin, Ethereum, and XRP. The Motley Fool recommends Standard Chartered Plc. The Motley Fool has a disclosure policy. Should You Buy XRP (Ripple) While It's Under $2.50? A Wall Street Analyst Says It Could Soar 150% was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data