XRP Depository Receipts: A New Avenue for U.S. Investors

Accredited investors in the United States are set to gain a new avenue for exposure to XRP, the native cryptocurrency of the Ripple network, without directly purchasing it from a cryptocurrency exchange. Two investment firms, Digital Wealth Partners (DWP) and Receipts Depository Corps (RDC), are preparing to launch Depository Receipts (DRs) tied to XRP, according to a report by FOX Business journalist Eleanor Terrett.

These XRP Depository Receipts 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 DRs resembles that of an exchange-traded fund (ETF) and American Depository Receipts (ADRs), which are commonly used in traditional finance to allow U.S. investors to trade shares of foreign companies without purchasing them on international exchanges.

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). This 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 DWP nor RDC has publicly confirmed the launch of the XRP DRs. Further details, including the timeline for availability and potential regulatory approvals, remain undisclosed.

Following the report, XRP experienced a brief price increase, surging 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.

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.