Franklin Templeton has chosen Coinbase to handle custody and trading for its proposed spot XRP exchange-traded fund, signaling growing institutional acceptance for the digital asset amid ongoing regulatory complexities.
The U.S. asset manager, which manages approximately $1.6 trillion in assets, named Coinbase Custody as the custodian for its XRP ETF. This designation was outlined in a final prospectus filed with the U.S. Securities and Exchange Commission (SEC).
Coinbase will also provide trading execution services for the fund, operating as the prime broker through separate entities.
The exchange-traded fund is anticipated to begin trading on November 18 on the Cboe BZX Exchange. This launch remains subject to regulatory approval.
The net asset value of the fund will be based on the CME CF XRP Dollar Reference Rate. CSC Delaware Trust Company will serve as the trust administrator.
This initiative represents one of the earliest structured frameworks for an XRP ETF in the United States. It underscores a growing institutional appetite for digital assets.
The SEC formally acknowledged Franklin Templeton’s application days after other XRP ETF filings. This included a February 14 proposal from Grayscale, which initiated a 240-day review period.
The SEC’s response marked its first formal engagement with proposals for investment products directly holding XRP. This occurs despite the agency’s separate litigation against Ripple Labs concerning XRP’s regulatory classification.
The trust structure itself is categorized as an emerging growth company under the JOBS Act. This status grants certain flexibilities in its reporting obligations during the initial years of operation.
Interest in investment vehicles linked to XRP has recently surged. Bitwise, another asset manager, announced its own XRP-linked fund targeting institutional investors would commence operations on November 20.
Recent market performance has also fueled the launch of new products. One XRP-based vehicle reportedly raised $243 million at its inception, surpassing the initial $111.7 million garnered by BlackRock’s Bitcoin ETF on its first day.