XRP IT JUST HAPPENED OMG... (XRP $1.9 TRILLION ETF??)

[00:00:00]Massive new upgrades coming to the XRP ledger that could unlock institutional adoption. We also have a brand new ETF index going live today and XRP represents 11% of that. Also, Chartered says a landmark moment for institutional DT plumbing is officially unfolding and Ripple has a connection. We also got more information about Hong Kong and their EHKD pilot. Will it be going from pilot into production soon? And will Ripple have a role? There's a lot of stories here I want to go over with you guys. Let's just jump into it. So, here is Troll Price. It launches the TKNZ.

[00:00:39]It's the first actively managed multi-token crypto ETF now trading on the New York Stock Exchange. It has Bitcoin, Ethereum, XRP, Salana, and Hyperliquid managed by a 20-year TradeFi veteran, Blue Maralerie. And so here is the percentage. XRP represents 11.4% of this. Bitcoin and Ethereum are much larger at 42% and 19%. So it's heavily weighted into Bitcoin and almost 20% into Ethereum. But third place here is XRP and a lot of people are talking about this. James Seoff says today T-roll price launched its first crypto ETF and it's actively managed basket ETF launching during a bare market and I know for a fact that this product was years in the making. Legacy asset managers continue to build in the crypto space despite the pullback in prices because they know where this is heading.

[00:01:34]You also saw Morgan Stanley officially rolling out Bitcoin spot trading for its 8.6 million Erade clients. starts with Bitcoin, then it goes to Ethereum, then it will go to Salana and XRP. It's just how these things work. You need more demand and volume for these larger institutions to make uh XRP specific products. We hope to see that here over the next 6 to 12 months. And Chad did say an active ETF is different from a passive ETF. So, it's good to know the difference here. Uh how an active ETF works. Instead of a passively flowing rules-based index, a portfolio manager and their team continually research buy and sell assets to take advantage of market shifts, manage risk, or target specific investment themes. They offer the trading flexibility and tax efficiency of an ETF, but apply the hands-on strategy typically found in traditional mutual funds. The pros here could it could be they offer the potential for higher returns, professional expertise, and the ability to pivot away from underperforming assets during volatile markets. The cons could be they generally have higher an expense ratio than passive funds with over the long term many struggle to consistently beat the market averages.

[00:02:48]So, do understand that if you're going to invest in these types of things, know what an active or passive ETF is and definitely talk with your financial adviser. All right, let's get into this story because I think there's something here that's growing and we're going to get more information as the days go on and then I'm really excited to get into these updates coming to the XRP ledger that will uh create institutional demand immediately once these things start to go in. So, Chartner says a landmark moment for institutional DT plumbing is officially unfolding and Ripple has a connection. Tell me more. HSBC has achieved a mi major milestone by becoming the first applicant to receive gate to approval from the Bank of England and the FCA to go live in the UK's digital security sandbox, also known as the DSS.

[00:03:35]Here is a breakdown of how the bank's digital asset stack connects all the dots. HSBC Orion for issuance. Operating a newly approved live digital securities depository inside the sandbox, the HSBC platform can handle the life cycle of a native digital tokenized bond. This includes the UK's digital guilt instrument, potentially making the UK the first G7 nation to put sovereign debt on distributed ledger technology.

[00:04:03]That would be a massive deal indeed. For now, the Ripple connection, while HSBC Orion serves as the platform for the tokenized bonds, medical harmonizer, Ripple custody provides HSBC with the underlying enterprisegrade custody infrastructure, essentially serving as a secure vault storage, a safety unit that ensures bankra level protection for real world assets. The overall pipeline picture, a complete end-to-end framework. Orion issues and settles the digital guilts and corporate bonds within the Bank of England's regulated sandbox while Ripple custody translate that that blockchain data back into HSBC's core banking architecture. Ripple also holds a UK EMI license to scale payment operations alongside approval from the Financial Conduct Authority, also known as the FCA. The message is clear. The UK is moving from pilot mode into modern financial architecture being built out in real time and Ripple has a seat at the table. Obviously, we're going to get more information as the days go on. And this was dated July 13th. So, this just happened just a few days ago. So, this is real updated live news and information. If you want to read the whole kind of uh update here, I'll put it on the screen. You can go ahead and pause it. But, I do want to continue to this story. Probably nothing. Ripple HSBC standard charter Hong Kong's digital dollar, the EHKD journey and has now progressed through both pilot phase and formally concluded in October 2025. The program's work with HSBC and Standard Charter and Ripple underscores Hong Kong's growing role in programmable payments, tokenized assets, and institutional digital finance.

[00:05:37]HKMA's postpilot direction is now clearly an institutional and wholesale by nature. After concluding the EHKD pilot, it said that the immediate priority is wholesale payments, tokenization support, and crossber settlement while it continues to build the foundations. You start to wonder when is you know Hong Kong going to move forward with this and will Ripple will Ripple's technology be used at the heart of this in some way, shape or form?

[00:06:05]Obviously XRP ledger as well. you know, we've seen uh like the uh we've seen central banks use XRP ledger technology, but not XRP specifically. I'm talking about what's happening in Europe with testing around uh eur the European Central Bank and Axiology, right? That's built on similar XRP ledger technology, but uses uh central bank money instead of XRP. You're wondering if something very similar could happen here. And obviously down the line uh you're going to have every every country is going to have some type of digital infrastructure. How will XRP be able to interoperate uh with those systems is going to be key moving forward. This HKMA H EHKD digital Hong Kong dollar journey moving from pilot into policy and infrastructure fave while Ripple positioned as tech provider for tokenized assets and settlement rails rather than the retail wallet layer.

[00:07:00]what the HKMA text is saying. HKMA is now focused on building a policy, legal, and technical foundation for a possible EHKD roll out targeting completion of its preparatory work for the first half of 2026. This will publish common token standards to support programmability and tokenization in digital money.

[00:07:21]Basically, the rulebook for how EHKD, tokenized deposits, and tokenized assets interoperate with each other. And the HKMA still hasn't committed to a full live launch date. They're explicitly saying implementation timing depends on international developments, technology progress, and market needs. Right? It's really difficult for one country just to get all of their infrastructure up if the other countries that they trade with on a large scale don't yet have either the rules and regulations or the infrastructure put into place. That's why Eurolear has kind of been ready for a while, but has been waiting for the DTCC to get up. All of these systems will eventually go full scale and that's where we could see uh you know the crypto market go from a speculation market to a utility market and I do think that that movement started yesterday with the DTCC going from pilot into production. Yes, we only saw a limited amount of transactions but they are live transactions. Don't get me wrong, that is a big step for the crypto market and blockchain technology as a whole. Now, let's shift here and talk about this institutional demand for XRP technology and the upgrades that might be coming. This first one is on batch transactions. Let's just jump into this.

[00:08:28]>> What I would say is that um it's like it's like you know basically being able to do atomic but atomic transactions like you would do in any database. I mean it's a super useful thing you know once you start using it really what don't what people you know sort of tend to forget is you know a lot of the actions that you do on a chain they're they're irreversible right you you do you do the tr you do it once I mean um but you so the typical way we do things in the XRPL is we compose with all the the because we have these beautiful primitives you know that you can use but then you can't really create these this dependency graph and you kind of have to create that dependency graph outside of the of the the chain. So, batch enables us to be able to combine all of these things into one, make it, you know, opens the design space in terms of things you can do and then and it has the added bonus of like it's just cleaner, right? At the end it's cleaner because either all the transactions go through and everything worked or they don't and then nothing hit the chain and you know we're back to you know we're we're we're in a clean slate state and we don't have to sort of you know manage the halfway there you know uh flows and all of that. So I think it's very exciting.

[00:09:39]>> He thinks it's very exciting. So I wanted to get a little bit more information on batch transactions to explain this on a on a maybe higher detail to you so you can better understand this. Okay. An atomic or batch transactions lets a bank bundle several related ledger operations into one all or nothing unit which cuts operational risk and cuts cost while enabling more complex onchain workflows.

[00:10:01]An XRPL batch transaction is a wrapper that can contain up to eight inner transactions. It can be payments, decks, actions, trust lines, NFT operations and so on and execute them in a single logical unit. It's an all or nothing mode. Either every interstep succeeds or the whole batch fails. So the ledger never ends up half updated in a half updated state. And why financial institutions would even care about something like this. It eliminates settlement and operational risk. In traditional rails, a multi-league trade, whether it's an FX swap, a bond purchase, or a moving of collateral, is spread across systems and time. So one leg can fail while other legs settle creating exposure and reconciliation headaches. Atomic batches guarantee that either the entire workflow completes or nothing moves which aligns with institutional risk controls and regulatory expectations for robust settlement. So if you are a bank or institution and you're doing an FX swap and it's going across multiple banks in different time zones and let's say one part of that transaction fails that could be a huge headache and it it's going to lead to cost and you have to reconcile get the money back and there's fees with that as well. This would be uh it would all or nothing right? So if you sent a transaction and it needed five or six intermediary steps, either everything succeeds or everything fails and you don't risk uh the the the risk of the time, energy and costs of that transactions and it enables persontoperson and OTC flows natively with batch transactions. Institutions can do trustless swaps or issue debt money market fund tokens and national currency IUS in one operation. exactly the kind of peer-to-peer OTC and liquidity management flows VET is is highlighting in this post. This means that things like atomic settlement asset to asset plus fees traded which could be bond token verse cash IUS plus spread can be coordinated without external smart contract engines or off ledger orchestration. And so there's also permission delegation and I know these are maybe two things you haven't heard of yet. You've you also have heard of the vaults and permission uh dexes and permission permission domains and all these other things that are being implemented in real time zero knowledge proofs. Uh this is kind of the next iteration of upgrades to the XRP ledger permission delegation.

[00:12:22]>> Um and it was born out of technically it's a Ripple so we should ask them but I'm pretty sure it was born out of the need of managing a Treasury wallet. Um, and in that when if you've ever seen, you know, a true treasury system inside of uh the blockchain, there there's multiple accounts. There's a hot wallet, there's a cold wallet, there's in in terms of an issuer, there's always an issuer and a distributor. And so the delegation use case really comes in handy here. And again, we're sort of using it at the XRPLF for credentials, but from an issuer standpoint, what you can do is you can delegate to another account to sort of mint that RLUSD or that USD stable coin. And that is how sort of circle operates, right? Is where they they have they have the issuer, but then they have different accounts that can actually mint and burn the token so that circle doesn't always have to do it. they can delegate that to merchants or or other banks. In terms of the XL or PLF and something cool with credentials is we actually delegate a credential create and credential destroy, right? So the issuer is always sort of the account that holds or that you know people are looking at for the issuer of the credential, but that other delegated account is who actually can who can issue it and and and destroy it. And we do that so that we don't constantly have to sign things from the treasury account. It can stay cold. That delegate account now has a multi-signer list or or however you want to design it, right?

[00:13:58]That's up to you. But it's basically the ability to delegate permission, specific permission to another account so that you can keep, you know, those that issuer or that trust, you know, that treasury rolet really safe and and cold storage and um and it was both.

[00:14:14]>> All right, if this is a little too technical, don't worry. I'll break it down for you. So, permission delegation on the XRP ledger is a basic way for an account to give another account limited onchain authority to perform specific tasks without handing over the main keys. For institution, that means better treasury operations, cleaner compliance workflows, and stronger security because sensitive keys can stay in cold storage wallet while day-to-day actions are delegated. Why this matters for institutions? The biggest institutional value is the separation of duties. a treasury team, a compliance team or an operations provider can give each and only the permissions they need instead of sharing one hot wallet or one multi-seg setup uh for everything. That reduces operational risk. If a delegate key is compromised, the damage is narrower because the permissions are scoped and revocable and the delegator can update or revoke them with another delegate set transaction. Permission delegation fits use cases like stable coin issuance, KYC, AML workflows, authorized trust lines, payment operations, and treasury automation. It is also designed to support rolebased access control, which is closer to how financial institutions already organize internal permissions. It also matters because the XRP ledger treats each delegate relationship as an on ledger entry. So institutions will need to plan around reserve requirements uh will need to plan around reserve requirements and account structure as they scale usage.

[00:15:45]In practice this makes delegation not just a security feature but a native account management primitive for enterprise workflows and also some of the other updates that we've seen here over the last 12 months. Remember permission domains XLS80. Permission domains lets institutions carve out gated zones on the XRP ledger where only KYC credentialed wallets can participate with rules enforced at the protocol level. These domains can host private stable coin rails, internal settlement systems and uh or tokenized security venues for banks, payment processors, and regulated exchanges that need to have a controlled environment on a public chain. There is XLS81 permission dex. the permission decks upgrade as a native order book where access is restricted to approved verified counterparties while preserving the XRPPL's non-custodial matching engine except this is to be used for regulated FX and stable coin markets also tokenized bond and commercial paper trading and darkpool style institutional venues where large orders can settle onchain without opening exposure to retail defi uh you also have token escrow for IUS and multi-purpose tokens that's MPT stands for token escrow extends the XRP ledgers XRP escrow to trust linebased tokens and multi-purpose tokens enabling time locked or conditional delivery versus payment across many asset types. This is a tailor made for vesting schedules, structured products and syndicated loans and security settlement flows where cash and or collateral need to move atomically under institutional rails.

[00:17:21]And then uh excuse me need to move yeah atomically. I got that right. And then also we did talk about batch transactions and a little bit more. So uh there's also native lending and single asset vault here. XRPL's native lending protocol and XRPL asset vault aggregate liquidity and issue transferable vault shares enabling onchain borrowing lending and collateralized credit at the protocol layer. Treasury desks, stablecoin issuers and funds could also use this to earn yield on the XRP ledger or tokenized assets and run secured credit lines and build money market style products without external smart contract risk. There's just so many things, right? Credentials, uh, deep freeze count, zero knowledge privacy. I mean, they really are setting up the XRP ledger for massive institutional use.

[00:18:08]They need all of these features in order to be able to operate at scale using blockchain technology. And you can take a look at the voting yourself if you want to go to xrpscan.com/ amendments. Here's where the voting takes place. You do need an 80% or higher consensus for two weeks straight before something is implemented onto the XRP ledger. And if you want to learn about these, you can go and click on each one of them and pull them up. And so, as you can see, there's been things that have already been appro approved and integrated that say yes. And of course, things that are still in the voting process will say voting on the right side. All right, I'm going to leave it there, guys. Thank you so much.

[00:18:46]Like, share, comment below. Appreciate all your support. I hope this was valuable to you. Uh it's always a journey learning all of these things day by day, and it's a real honor to be uh here with you. All right, I'll see you next time. Aloha.