Now, XRP investors can invest in cryptocurrency without buying it directly from an exchange. Soon, accredited investors will be able to buy XRP Depository Receipts (DRs) through Receipts Depositary Corporation (RDC) and Digital Wealth Partners (DWP). Also, this move is expected to ease the accessibility and safety of making trades of XRP through institutional investors.
What are XRP Depository Receipts?
XRP DRs function similarly to American Depository Receipts (ADRs), which enables U.S. buyers to trade shares from foreign companies without associating with foreign stock exchanges. Investors can choose to buy XRP DRs rather than buying XRP directly through a crypto exchange, as XRP DRs signify actual XRP ownership and this XRP is stored securely at a regulated custodian.
A Secure and Regulated Investment Option
Anchorage will hold the XRP DRs at a federally regulated bank supervised by the U.S. Office of the Comptroller of the Currency (OCC). This ensures security of the XRP backing the receipts. As the investment comes within the terms of a regulated framework, institutional investors can step in with confidence.
Eleanor Terrett confirmed on X, tweeting, “$XRP depository receipts will soon be available for purchase by accredited investors through @ReceiptsDepo and @DWP_advisors.”
Benefits of XRP DRs
In contrast to ETFs which are redeemed for cash, XRP DRs are purchases of the real digital asset. However, such depository receipts can also be converted into real XRP when permitted by regulations. They are also DTC eligible allowing them to be traded on institutional platforms, hence XRP investments are as easy as trading stocks.
Founded by former Citigroup executives, RDC is a startup behind this initiative, and its implementation demonstrates how the financial world is combining cryptocurrency with traditional markets.
Since XRP DRs already run in a regulated environment, they provide a simpler, safer, and more accessible way to investors to gain XRP exposure.
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