XRP DeFi Revolution: Ripple & SBI Unlock $1B Yield Potential with Institutional Grade Infrastructure
The XRP Ledger (XRPL) is poised for a significant leap forward in its DeFi capabilities, thanks to a new partnership between SBI Ripple Asia and Doppler Finance. This collaboration aims to build robust yield infrastructure and facilitate the tokenization of real-world assets (RWAs) directly on the XRPL. While XRP has long been recognized for its speed and efficiency in payments, its lack of native staking has been a hurdle for attracting yield-seeking capital. This initiative directly addresses that challenge, potentially unlocking over $1 billion in addressable market opportunity by bridging the gap between traditional finance (TradFi) and decentralized finance (DeFi). This article dives deep into the implications of this partnership, the current state of XRPL’s DeFi ecosystem, and the potential for institutional adoption.
SBI Ripple Asia & Doppler Finance: A Strategic Alliance
On December 17th, SBI Ripple Asia and Doppler Finance announced a Memorandum of Understanding (MOU) to explore the development of XRP-based yield infrastructure and RWA tokenization on the XRPL. This marks SBI Ripple Asia’s first partnership with a protocol native to the XRPL, signaling a strong commitment to expanding the ecosystem’s functionality. The partnership will leverage Doppler Finance’s expertise in yield generation and tokenization, combined with SBI Ripple Asia’s institutional network and regulatory compliance capabilities.
Focus on Institutional Adoption & Regulated Custody
A key component of this collaboration is the appointment of SBI Digital Markets as the institutional custodian with segregated custody. SBI Digital Markets holds a Capital Markets Services License in Singapore, including custodial services and dealing in capital market products, and is also an Exempt Financial Adviser. This emphasis on regulated custody is crucial for attracting institutional investors who require a secure and compliant environment for their digital assets. The structure is designed to make XRP “productive” while maintaining the highest standards of security and regulatory adherence.
The Need for Yield in the XRP Ecosystem
XRP, unlike many other cryptocurrencies, does not have native staking capabilities. This means that holders cannot directly earn rewards by locking up their XRP to support the network. To address this, the partnership will explore various yield-generating strategies, moving beyond on-chain staking mechanics towards balance-sheet-friendly rails like custody segregation, eligibility controls, and transparent return reporting. This approach is vital for attracting institutional capital, which often prioritizes compliance and risk management over purely decentralized solutions.
Exploring Yield Generation Strategies
Several potential avenues for generating yield with XRP are being considered:
- CeDeFi Strategies: Expanding centralized finance (CeFi) style strategies, leveraging existing financial infrastructure.
- Tokenized Cash Equivalents: Pairing XRP exposure with tokenized Treasury bills or money market funds. Ripple has already begun seeding this approach through partners offering tokenized treasury products redeemable with RLUSD.
- Credit Primitives: Developing on-chain lending protocols, such as the proposed XRPL-native lending primitive (XLS-66d) currently under discussion.
XRPL’s DeFi Landscape: Current Traction and Limitations
While the XRPL is gaining momentum in the DeFi space, it still lags behind Ethereum in terms of Total Value Locked (TVL). As of late December 2025, XRPL boasts approximately $64.4 million in TVL and a $347 million stablecoin market cap (a 13% increase over the past week). RLUSD accounts for a dominant 78.90% of XRPL stablecoins, with daily DEX volume reaching $5.7 million and $35.8 million over seven days. RWA.xyz reports $212 million in distributed asset value and $239 million in represented asset value, encompassing 50 RWAs and a $327 million stablecoin market cap (up 38% over 30 days).
Comparing XRPL to Ethereum & the RWA Market
However, the scale of XRPL’s DeFi activity pales in comparison to Ethereum. Ethereum currently holds over $12 billion in total RWA value and $171 billion in stablecoin market cap. Globally, distributed asset value stands at $18.74 billion, with total stablecoin value at $300.18 billion. This significant gap highlights the need for a custody-led institutional approach to drive growth on the XRPL. The potential for institutional adoption is immense, and a secure, compliant infrastructure is essential to unlock it.
The $1 Billion AUM Potential: A Scalability Analysis
The potential for yield-generating wrappers on XRP is substantial. With approximately 60.49 billion XRP in circulation and a spot price near $1.91, even a small percentage routed into yield-bearing products could generate significant Assets Under Management (AUM).
| Share of Circulating XRP | XRP Amount | Approx AUM (USD) |
|---|---|---|
| 0.1% | ~60.49M XRP | ~$114M |
| 0.5% | ~302.45M XRP | ~$572M |
| 1.0% | ~604.91M XRP | ~$1.14B |
| 2.0% | ~1.21B XRP | ~$2.29B |
| 5.0% | ~3.02B XRP | ~$5.72B |
This demonstrates that even a modest adoption rate could result in substantial AUM. For firms offering custody, compliance, and reporting, the revenue potential is significant, potentially reaching $5.7 million to $17.1 million annually based on a 50-150 basis point all-in fee envelope on $1.14 billion AUM.
Tokenization, Regulation, and the Future of XRP
The timing of this partnership coincides with growing forecasts for tokenization and increasing demand for efficient payment systems. A 2022 Ripple and BCG report projects the tokenized RWA market to reach $9.4 trillion by 2030 and $18.9 trillion by 2033, with a 53% CAGR. McKinsey also highlights the shift from pilot projects to large-scale implementation of tokenization in financial services. Furthermore, stablecoin payments have surged, rising from $6.0 billion in February to $10.2 billion in August, with over $136 billion settled since 2023.
Navigating Regulatory Challenges
However, regulatory scrutiny remains a key consideration. The International Organization of Securities Commissions (IOSCO) has warned about the potential risks associated with tokenization, including market integrity and investor protection. These concerns are directly relevant to the evaluation of an institutional XRP yield wrapper, requiring clear ownership definitions, transparent redemption processes, auditable returns, and robust liquidity management. The XRPL’s roadmap includes features like Multi-Purpose Tokens, Deep Freeze, and Credentials, which are designed to address these regulatory concerns and enable permissioned flows.
Conclusion: A Promising Future for XRP DeFi
The partnership between SBI Ripple Asia and Doppler Finance represents a significant step forward for the XRPL ecosystem. By focusing on institutional adoption, regulated custody, and innovative yield generation strategies, this collaboration has the potential to unlock substantial value and position XRP as a leading player in the evolving DeFi landscape. The next milestones will involve product design, defining the eligible investor scope, selecting yield sources, and establishing robust disclosure and attestation mechanisms. The future of XRP DeFi looks bright, and this partnership is a key catalyst for its continued growth and success.
Mentioned in this article 
XRP 
Ripple 
SBI Crypto