- XRP Depository Receipts (DRs) will soon launch, allowing accredited investors to access XRP through regulated financial products.
- Anchorage Digital will custody XRP DRs, ensuring compliance under the U.S. Office of the Comptroller of the Currency (OCC).
- Unlike XRP ETFs, XRP DRs enable direct ownership while integrating with traditional finance for institutional investors.
Receipts Depository Corporation, a digital securities firm, is preparing to launch XRP Depository Receipts based in the United States. The product’s target will be accredited investors only and will be supported by Digital Wealth Partners (DWP) Advisors. According to Fox Business Journalist Eleanor Terrett on X, the initiative will work under the direction of the U.S. Office of the Comptroller of the Currency (OCC).
XRP DRs work similarly to American Depository Receipts (ADRs), enabling US investors to own foreign stocks. Instead of buying XRP straight from exchanges, investors will purchase these receipts for actual XRP owned by a regulated custodian. Anchorage Digital, a federally chartered digital currency bank, will manage the custody of the XRP DRs to maintain security and compliance and make XRP more accessible to institutions.
The purpose of XRP DRs is to link traditional financial markets (TradFi) to Decentralized Finance (DeFi). These depository receipts help give investors access to XRP in a more structured and regulated manner without directly involving themselves in crypto trading. The XRP DR framework connects institutional trading systems, making it available to brokers and banks through the existing trading market.
When compared to ETFs, XRP DRs provide direct ownership in the cryptocurrency, rather than converting the shares for cash. This aligns with the interests of investors who wish to invest in digital assets but still hold stakes in XRP. The product also has in-kind convertibility, for investors establishing or redeeming DRs for actual XRP depending on the regulations.
RDC, led by former Citigroup executives, is expanding its offerings to provide regulated access to digital assets. Unlike XRP ETFs, which await SEC approval, XRP DRs are already structured within a compliant framework, making them available to institutional investors. The Depository Trust Company (DTC) has also made the XRP DRs eligible for electronic settlement, further streamlining institutional adoption.
The launch of XRP DRs has sparked discussions within the Ripple ecosystem, with proponents viewing it as a strategic move to broaden market exposure. The product’s availability allows institutional investors to diversify their portfolios while mitigating risks associated with direct crypto purchases.
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