A recent regulatory filing from the Charles Schwab Family of Funds has revealed that several XRP exchange-traded funds (ETFs) are now serving as collateral within institutional portfolios, marking a noteworthy development in crypto-linked financial products.
Schwab fund details XRP ETF collateral holdings
According to a Form N-MFP3 submitted to the U.S. Securities and Exchange Commission dated September 8, the Schwab Prime Advantage Money Fund, part of the Charles Schwab Family of Funds, listed more than $1 million in shares of the Grayscale XRP Trust ETF as collateral. The document specifically valued the Grayscale XRP Trust ETF position at approximately $1.01 million.
Additionally, the same filing disclosed nearly $3.06 million in shares of the Canary XRP ETF and another $702,000 in the Franklin XRP ETF, with all three positions collectively totaling close to $4.8 million used as collateral.
The disclosed ETF shares, including those from Grayscale, Canary, and Franklin, reflect increasing use of XRP-linked products as collateral in institutional funds, amassing about $4.8 million in total.
The listing of these crypto ETF shares as collateral signals a growing willingness among institutional portfolios to consider digital assets as part of their financial infrastructure.
Institutional adoption widens across financial firms
Recent SEC filings also reveal that an expanding list of investment advisers and wealth managers are integrating XRP-linked ETFs into their holdings. Clear Creek Financial Management, for example, reported ownership of 11,621 shares in the Bitwise XRP ETF for the quarter ending June 30. Meanwhile, Leisure Capital Management disclosed holding 16,745 shares in the Franklin XRP ETF in its own second-quarter filing.
Beacon Pointe Advisors and Brookstone Capital Management have joined the group of firms reporting XRP ETF exposure in official SEC filings, further highlighting the sector’s gradual movement toward digital asset inclusion.
While individual position sizes remain relatively limited given the scale of these asset managers, the presence of XRP ETFs across multiple institutional filings points to a rising trend in the adoption of crypto-based securities.
Market shift reflects growing role for tokenized assets
As interest in digital assets grows among traditional institutions, technical developments within the sector have enabled more direct and efficient asset management. Rather than relying exclusively on established brokerage networks, investors are increasingly utilizing Web3 platforms to access tokenized representations of real world assets (RWAs).
This shifting landscape has led to the emergence of platforms like 1stepSwap, which allow users to securely hold shares in major U.S. companies, gold, and silver directly within crypto wallets. By automatically sourcing the best available market prices and bypassing intermediaries, these systems streamline investment and collateral processes for a new generation of participants.
Despite these advancements, the underlying XRP token continues to face pressure in the broader market, currently trading 60% below its all time high. This decline has prompted closer scrutiny of crypto ETF products among institutional investors.
Institutional interest is rising, but XRP’s price remains well off previous highs, illustrating the volatility that persists in the sector even as adoption widens.
Collectively, the increased use of XRP ETFs as collateral, expanding institutional participation, and adoption of tokenized assets through new Web3 platforms reflect an ongoing transformation at the intersection of traditional finance and digital assets.
