XRP-Backed Securities Set to Launch, Enabling Institutional Access

Receipts Depositary Corp. (RDC), a startup founded by former Citigroup executives, is planning to introduce XRP-backed securities, marking a significant development in the world of cryptocurrencies and institutional investing.

Institutional Access to XRP via Regulated Market Infrastructure

This move will enable institutions to access XRP through U.S.-regulated market infrastructure, providing a new avenue for investment in the popular digital asset. The launch of XRP-backed securities follows the successful introduction of Bitcoin depositary receipts (BTC DRs) by RDC last year.

Understanding Depositary Receipts

Modeled after American Depositary Receipts (ADRs), BTC DRs allow qualified institutional buyers (QIBs) to hold and trade Bitcoin using the same infrastructure they use for traditional securities. Similarly, the XRP securities will be cleared via the Depository Trust Company (DTC), ensuring a seamless and regulated investment experience.

RDC’s Founders and Backers

RDC’s co-founders, Ankit Mehta, Bryant Kim, and Ishaan Narain, each previously worked at Citigroup, bringing a wealth of experience in traditional finance to the startup. RDC is backed by prominent investors, including asset manager Franklin Templeton, financial services firm BTIG, and venture capital firm Broadhaven Ventures.

Tips for Institutional Investors

For institutional investors looking to explore XRP-backed securities, consider the following:

  • Understand the regulatory framework governing XRP-backed securities in the U.S.
  • Assess the potential risks and benefits of investing in XRP-backed securities.
  • Research the infrastructure and clearing processes used by RDC and the Depository Trust Company (DTC).

As the world of cryptocurrencies continues to evolve, innovative solutions like XRP-backed securities are bridging the gap between traditional finance and the digital asset space.

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