Accredited investors in the United States will soon have a new way to gain exposure to XRP without directly purchasing the asset from a cryptocurrency exchange. According to FOX Business journalist Eleanor Terrett, two investment firms—Digital Wealth Partners (DWP) and Receipts Depository Corps (RDC)—are preparing to launch Depository Receipts (DRs) tied to XRP. XRP Depository Receipts to Offer Alternative Investment Option Terrett revealed the development in a recent post on X, stating that accredited investors will soon be able to purchase XRP Depository Receipts. These financial instruments are designed to track the price of XRP, allowing investors to gain exposure to its value movements without holding the cryptocurrency directly. The structure of these XRP DRs resembles that of an exchange-traded fund (ETF) and American Depository Receipts (ADRs). ADRs are commonly used in traditional finance to allow U.S. investors to trade shares of foreign companies without purchasing them on international exchanges. Similarly, XRP DRs will enable institutional investors to gain access to the asset without navigating cryptocurrency exchanges, which may have regulatory or operational complexities. Terrett also noted that this initiative is another step toward bridging the gap between traditional financial markets and decentralized finance (DeFi). The move could appeal to institutional investors seeking regulatory-compliant ways to gain exposure to digital assets without direct ownership. We are on twitter, follow us to connect with us :- @TimesTabloid1 — TimesTabloid (@TimesTabloid1) July 15, 2023 Anchorage Digital to Provide Custody Services In addition to the involvement of DWP and RDC, the upcoming XRP DRs will be custodied by Anchorage Digital, a federally chartered crypto bank regulated by the U.S. Office of the Comptroller of the Currency (OCC). The custody arrangement could add an extra layer of security and regulatory oversight to the XRP DRs, potentially increasing their appeal to institutional investors. While the information was disclosed by Terrett, neither Digital Wealth Partners nor Receipts Depository Corps has publicly confirmed the launch of the XRP DRs. Further details, including the timeline for availability and potential regulatory approvals, remain undisclosed. Market Reaction and XRP Price Movements Following the report, XRP experienced a brief price increase. Data from CoinMarketCap shows that the cryptocurrency surged from $2.42 to approximately $2.50. However, the momentum was short-lived, as XRP later fell below the $2.40 mark within hours. At the time of writing, XRP is trading at $2.41, representing a 24-hour loss of 0.55%. Despite the short-term loss, XRP is up 1.04% over the past week, according to CoinMarketCap data. The introduction of XRP Depository Receipts could mark a significant development in institutional adoption of the asset. However, it remains to be seen how regulators and investors will respond once the product is officially launched. Disclaimer : This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses. Follow us on Twitter , Facebook , Telegram , and Google News The post Accredited Investors to Gain XRP Exposure Via This New Means appeared first on Times Tabloid .
