Receipts Depositary Corp. (RDC), founded by former Citigroup executives, has launched XRP-backed securities aimed at institutional investors within the regulatory framework of the United States.
Product and Operational Features
The new product will be structured similarly to American depositary receipts representing foreign securities. These securities, designed based on XRP, will be offered to qualified institutional buyers under exemptions from the Securities Act of 1933. This approach eliminates the need for approval from the U.S. Securities and Exchange Commission.
Corporate Collaborations and Developments
RDC’s XRP-based securities will undergo similar clearing processes as existing Bitcoin and Ether-backed products. The clearing will be conducted by the Depository Trust Company (DTC). With increasing interest in XRP in modern financial markets, various asset managers and ETF providers are taking focused actions regarding XRP.
Significance and Future Prospects of the New Product
The plan aims to provide investors with an alternative access route by presenting direct ownership of XRP. Unlike conventional products that rely on cash settlement, this approach directly represents the digital asset. This implementation is thought to potentially create a different approach in the market. The product, as permitted by regulatory frameworks, is viewed as a significant step toward the inevitable adoption of digital assets by institutions in the financial world. The direct ownership opportunities offered by the new product structure are closely monitored by market participants.
The offering of XRP-backed securities by RDC has the potential to significantly impact the financial market, prompting institutional investors to consider new strategies in support of digital assets.
