A new opportunity for qualified investors to gain exposure to XRP is on the horizon through regulated depository receipts (DRs). These XRP-backed securities will allow investors to hold a form of XRP without having to directly purchase the cryptocurrency on an exchange. Instead, investors will acquire XRP Depository Receipts (XRP DRs), which represent actual XRP held in custody by a regulated entity.
The receipts will be managed by Anchorage, a federally chartered bank regulated by the U.S. Office of the Comptroller of the Currency (OCC). This offers a more traditional investment structure, where investors can trade XRP in a regulated and familiar format, similar to how American Depositary Receipts (ADRs) are used to represent foreign company shares in U.S. markets.
The Receipts Depositary Corporation (RDC), founded by former Citigroup executives, is leading the initiative to bring XRP DRs to institutional investors. This framework is distinct from XRP ETFs and trusts, which are still awaiting approval from the SEC. The XRP DRs have already been established within the U.S. regulatory system, making them available to qualified investors without delay.
These XRP DRs will be DTC-eligible, allowing them to integrate seamlessly with institutional trading platforms and benefit from electronic settlement systems. This enables financial institutions, banks, and brokers to manage XRP investments like traditional securities. Additionally, the program includes in-kind convertibility, allowing investors to create and redeem DRs for actual XRP in accordance with regulatory allowances.
By using established financial market infrastructure, the XRP DRs aim to simplify crypto investments, making them as accessible and manageable as trading stocks. This initiative brings cryptocurrencies, specifically XRP, closer to mainstream institutional investors, with the potential to significantly broaden market participation.
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