Daily Brief: September 19, 2025
Tokenized Funds, Crypto ETF, Ethereum Debate
TL;DR: Ripple teams up with DBS and Franklin Templeton to launch tokenized trading solutions, blending traditional finance with blockchain. The SEC approves Grayscale's first U.S. multi-asset cryptocurrency ETF, signaling regulatory progress. Vitalik Buterin defends Ethereum's 45-day staking exit queue as a security measure, stirring debate on user experience versus security in decentralized finance. These stories highlight the ongoing integration of digital assets into mainstream finance.
🔗 Ripple, DBS, and Franklin Templeton Unite on Tokenized Funds
Ripple has partnered with DBS and Franklin Templeton to launch tokenized trading and lending solutions. This collaboration introduces Franklin Templeton's sgBENJI token on the DBS Digital Exchange, utilizing Ripple's RLUSD stablecoin. The goal is to blend traditional money market funds with blockchain technology, providing accredited and institutional investors with efficient, liquid, and borderless digital asset solutions.
The partnership allows sgBENJI tokens to be used as collateral for credit, enhancing their market utility. Ripple's RLUSD stablecoin, launched in December, aims to transform repo trading by serving as the base currency for trading sgBENJI. This strategic move seeks to boost market efficiency and liquidity through tokenized securities and on-chain credit facilities.
DBS Digital Exchange will list sgBENJI alongside RLUSD, enabling real-time trading between a yield-bearing token and a stablecoin. This approach addresses volatility issues in digital asset investing by combining yield generation with stablecoin liquidity. Franklin Templeton will issue sgBENJI on the XRP Ledger, taking advantage of its high throughput and low costs to enhance capital efficiency and portfolio management for institutional investors.
Why it matters: This partnership bridges traditional finance and blockchain, enabling institutional investors to access liquid, efficient, and regulated on-chain money market funds, highlighting the growing mainstream adoption of digital assets.
🚀 SEC Greenlights Grayscale's Multi-Asset Crypto ETF
The U.S. Securities and Exchange Commission (SEC) has approved Grayscale's Digital Large Cap Fund (GDLC), marking a significant milestone as the first multi-asset cryptocurrency exchange-traded fund (ETF) in the United States. This fund provides investors with exposure to leading cryptocurrencies like Bitcoin, Ethereum, XRP, Solana, and Cardano, without the need to directly manage these digital assets. The approval reflects a shift towards more streamlined regulatory processes, thanks to new SEC standards designed to expedite crypto ETF approvals.
Grayscale's GDLC fund, which began as a private placement in 2018, has now evolved into a publicly traded ETF with $915.6 million in assets. This development follows Grayscale's successful legal battle with the SEC, which previously paved the way for Bitcoin and Ethereum ETFs. The fund's approval is seen as a groundbreaking step in cryptocurrency investment, with Grayscale's leadership continuing to bridge traditional finance and digital assets.
The SEC's approval of Grayscale's multi-asset ETF is part of a broader effort to establish clearer rules for crypto ETFs. This decision follows an indefinite pause and is complemented by the recent debut of other crypto ETFs, such as those tracking XRP and Dogecoin. The approval signals increased regulatory clarity and investor choice in the crypto ETF market, reflecting growing acceptance of diversified crypto investment products.
Why it matters: This approval broadens investor access to diversified digital asset exposure, signaling maturation and growing acceptance of crypto investment products within a regulated framework.
🛡️ Vitalik Buterin Defends Ethereum's Staking Exit Queue
Vitalik Buterin has addressed concerns about Ethereum's 45-day staking exit queue, emphasizing that this delay is an essential security feature. He likened unstaking to a soldier leaving an army, suggesting that some friction is necessary to ensure network security. This response followed criticism from Galaxy Digital's head of DeFi, who unfavorably compared Ethereum's queue length to Solana's two-day unstaking period. Despite these critiques, Ethereum remains robust with over a million active validators and nearly 30% of its ETH supply staked.
The unstaking period for Ethereum has grown from about 10 days to over 45 days due to a surge in the amount of ETH being unstaked. This has led to complaints from users who find the long wait inconvenient for quick access to funds. Buterin responded by stressing that the extended waiting period is a deliberate security measure to maintain the chain's integrity. Despite the frustration, he urged service providers to inform clients about potential delays.
Critics argue that the lengthy exit times hinder usability and competitiveness, especially when compared to networks with faster unstaking processes. Buterin acknowledged that improvements to user experience are in progress but will take time to implement effectively. This debate highlights the ongoing tension between Ethereum's focus on security and user experience, with Galaxy Digital's recent investment in Solana highlighting competitive dynamics in staking and DeFi.
Why it matters: Understanding Ethereum's staking exit queue highlights the trade-off between security and liquidity, influencing investor confidence and the broader adoption of Ethereum in decentralized finance.
