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coinpedia 2025-02-08 04:44:07

Ripple News: XRP Depository Receipts to Be Offered to Accredited Investors

The post Ripple News: XRP Depository Receipts to Be Offered to Accredited Investors appeared first on Coinpedia Fintech News XRP depository receipts (DRs) will soon be available for purchase by accredited investors through Receipts Depositary and DWP Advisors, according to reports from Fox Business. This new financial product offers a regulated way for investors to gain exposure to XRP without purchasing the cryptocurrency directly from exchanges. The concept of XRP DRs is 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 the underlying XRP, providing investors an easy way to gain exposure to the asset without the complexities of directly 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 considered a major step in bridging the gap between traditional finance (TradFi) and decentralized finance (DeFi), as it makes digital assets more accessible to a broader audience. Custody and Regulation: Anchorage and the OCC The 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 is a trusted institution specializing in secure custody for crypto assets, ensuring that the XRP behind the DRs is safely managed within a regulated framework. This adds a layer of security and confidence for institutional investors looking to enter the crypto space. Expanding Product Offerings Receipts Depositary Corporation (RDC), the company behind the XRP-backed securities, has been steadily expanding its product offerings. This expansion offers institutional investors more ways to engage with cryptocurrency in a regulated market environment. The Advantages of XRP Depository Receipts Unlike ETFs, where shares are redeemed for cash, XRP DRs provide accredited investors with direct ownership of XRP. This gives investors the opportunity to hold the asset directly while benefiting from a structured and regulated investment vehicle. This difference could appeal to institutions that seek direct ownership of digital assets but require compliance with traditional financial market regulations.

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