Accredited investors will soon be able to purchase XRP depository receipts through Receipts Depositary and DWP Advisors, providing a regulated means to invest in XRP without using crypto exchanges.
What are XRP Depository Receipts
XRP Depository Receipts (DRs) are similar to traditional American Depository Receipts (ADRs), which represent shares of foreign companies listed on U.S. exchanges. XRP DRs will represent ownership of the underlying XRP, allowing investors to gain easy exposure to the asset without the complexities of trading it directly on crypto exchanges.
Custody and Regulation
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 seeking to enter the crypto space.
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 feature could appeal to institutions that seek direct ownership of digital assets but require compliance with traditional financial market regulations.
The introduction of XRP depository receipts opens new avenues for institutional investors, bridging traditional and decentralized finance and making digital assets more accessible.
