Cryptocurrency

BlackRock Picks Avalanche While Franklin Templeton Chooses the XRP Ledger: Which Chain Is Winning Wall Street?

BlackRock chose Avalanche and Franklin Templeton chose the XRP Ledger, but neither coin has gained a cent from these high-profile partnerships. Understanding why reveals something uncomfortable about what Wall Street's blockchain endorsements actually mean for everyday crypto holders.

By Sam Daodu
Published October 10, 2026, 8:30am ET · 4 min read

The Crypto Desk desk. Editor: Sam Daodu.

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A word cloud illustrates the key concepts driving the rapidly evolving landscape of blockchain, cryptocurrency, and digital finance, as major institutions increasingly engage with tokenized assets. © Thinkstock

In a notable move for the cryptocurrency landscape, BlackRock added its tokenized dollar liquidity fund to Avalanche (CRYPTO: AVAX) in November 2024. Then, on September 18, 2025, Franklin Templeton, along with Singapore’s DBS Bank and Ripple, announced it would issue Franklin Templeton’s tokenized money market fund on the XRP Ledger, the underlying network for XRP (CRYPTO:XRP).

These developments from two of the largest asset management firms have raised the stakes in the ongoing debate over the XRP Ledger versus Avalanche. However, neither cryptocurrency has seen gains from these partnerships. As of October 10, 2026, AVAX trades at $10.55, about 93% below its peak of $144.96, while XRP stands at $1.41, about 61% below its all-time high of $3.65. This begs the question: which blockchain is winning Wall Street, and does this “victory” benefit holders of these coins?

What BlackRock and Franklin Templeton Put on Avalanche and the XRP Ledger

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Tokenization refers to creating a digital claim on an asset—like a share in a fund—using blockchain technology, allowing for quicker settlement and reduced reliance on brokers and transfer agents. Both funds primarily invest in short-term government debt and offer yields aligned with current interest rates.

BlackRock launched its fund on Ethereum in March 2024, then added Avalanche in November. This expansion, managed by tokenization firm Securitize, saw the fund accumulate about $2.2 billion across chains, while Avalanche’s total tokenized real-world assets from all issuers have passed $2.1 billion.

In contrast, Franklin Templeton’s situation is slightly more complex. Their fund, which had over $736 million at the time of the announcement, trades on DBS’s digital exchange using RLUSD, Ripple’s dollar-backed stablecoin. Future phases of this initiative may allow clients to use fund tokens as collateral for loans, although these plans remain in the exploratory stage. Notably, the XRP Ledger has also welcomed $2.2 billion in tokenized commodities in 2026, surpassing Ethereum’s $1.6 billion.

Why Tokenized Funds Aren’t Boosting Demand for AVAX and XRP

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Funds operating on a blockchain generate transaction fees, the only direct link between Wall Street activity and the cryptocurrency itself. Avalanche users pay fees in AVAX, while XRP Ledger users pay minimal fees in XRP. Importantly, the networks burn these fees, so they leave circulation. However, if a fund token remains intact in an account, it doesn’t generate fees because fees arise only when tokens are issued, transferred, or redeemed.

Investors typically hold cash funds for yield and don’t trade them frequently, resulting in minimal movement of these tokens. Given AVAX’s market value of around $4.7 billion and XRP’s $88.7 billion, the resulting fee stream is insufficient to meaningfully influence either coin’s market price. In fact, AVAX’s value dipped 3.5% over the past week, while XRP fell 5.2%, despite gains in tokenization for both networks.

Furthermore, the trading setup does not directly involve the cryptocurrencies. On DBS’s exchange, clients exchange RLUSD for Franklin Templeton’s fund token; the announcement did not directly identify XRP as the asset facilitating these trades. Similarly, BlackRock’s fund made no specific commitment to AVAX beyond the transaction fees.

What Wall Street’s Choices Signal for Avalanche and the XRP Ledger

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Despite the complexities, these institutions’ choices are deliberate. A major investment manager selects a blockchain for a regulated fund only after thorough evaluations by compliance and technology teams, suggesting both networks meet those requirements. This endorsement could enhance each network’s appeal for future funds.

The ability to use collateral gives the XRP Ledger a strategic edge that Avalanche lacks in this scenario. If DBS implements this feature, fund tokens could be transferred more often, increasing transaction fees. However, it remains unclear how much AVAX or XRP will actually be used, as neither network reports fee revenue from these funds.

Is the XRP Ledger or Avalanche Winning Wall Street?

Currently, the XRP Ledger holds a slight advantage. Its partnership links a fund manager, a regulated bank exchange, and a stablecoin with a potential collateral phase. While Avalanche boasts a larger client, BlackRock’s fund is active on multiple chains, making Avalanche just one of several options. XRP holders also get a more direct benefit: Franklin Templeton launched a spot XRP ETF in November 2025 that directly buys and holds XRP.

Nonetheless, both groups of cryptocurrency holders may find that the hype surrounding these partnerships does not translate into significant demand or price increases. DBS’s planned collateral phase is the crucial test. If it launches and identifies XRP as a settlement or collateral asset, it could drive ongoing demand for XRP. Conversely, if it proceeds solely with RLUSD, Wall Street may favor the XRP Ledger while still failing to create substantial demand for XRP, similar to Ripple’s existing banking partnerships.

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Sam Daodu

Sam Daodu is a crypto analyst who's spent nearly a decade making blockchain understandable—no easy task when most whitepapers read like fever dreams. He writes for 24/7 Wall St., covering Bitcoin, altcoins, and crypto market analysis for investors. Before crypto, he was a tech writer (back when explaining "the cloud" was peak innovation). Since 2018, he's written for CoinTelegraph, Yahoo Finance, The Block, Cryptonews, Zypto, Rain, and more—basically anywhere people want crypto news without the headache. Sam runs MacLabs Marketing, a content agency for crypto brands tired of sounding like AI wrote their website. He also publishes free crypto education on his site for Web3 enthusiasts who think "gas fees" is a typo. When he's not writing or staring at charts, Sam's either: - Watching anime (currently convinced One Piece has better tokenomics than most altcoins) - At the gym sculpting himself into a Greek god - Listening to the music your mum warned you only bad boys listen to Connect: LinkedIn | Email | MacLabs Marketing

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