XRP depository receipts (DRs) will soon be available for accredited investors to purchase. This new financial product will be offered by Receipts Depositary and DWP Advisors, providing a regulated way for investors to gain exposure to XRP without buying the cryptocurrency directly from exchanges.
XRP DRs are similar to traditional American Depository Receipts (ADRs), which represent shares of foreign companies listed on U.S. exchanges. The XRP DRs will represent ownership of XRP, allowing investors to easily access the asset without the complexities of trading it on crypto exchanges.
These DRs offer similar benefits to exchange-traded funds (ETFs), making it easier for institutional investors to access crypto assets. This launch is a significant step in bridging the gap between traditional finance and decentralized finance, as it makes digital assets more accessible to a wider audience.
The custody of XRP DRs will be held by Anchorage, a federally chartered bank regulated by the U.S. Office of the Comptroller of the Currency (OCC). Anchorage specializes in secure custody for crypto assets, ensuring the safe management of the XRP behind the DRs within a regulated framework. This adds a layer of security and confidence for institutional investors entering the crypto space.
Receipts Depositary Corporation (RDC), the company behind the XRP-backed securities, has been expanding its product offerings. This expansion provides institutional investors with more ways to engage with cryptocurrency in a regulated market environment.
Unlike ETFs, where shares are redeemed for cash, XRP DRs provide accredited investors with direct ownership of XRP. This allows investors to hold the asset directly while benefiting from a structured and regulated investment vehicle. This difference may appeal to institutions seeking direct ownership of digital assets while complying with traditional financial market regulations.
Note: Investments carry market risks. Please invest carefully. We do not accept responsibility for any financial losses.
