Receipts Depositary Corp. (RDC), a start-up founded by a group of previous Citigroup leaders, plans to launch XRP-supported securities, according to people who are familiar with the case.
This will give institutions access to the XRP (XRP) securities through US regulated market infrastructure.
The company will offer deposit revenue similar to the US deposit income (ADR) representing foreign shares on US stock exchanges.
The product will only be offered to qualified institutional buyers via transactions that are exempt from registration under the Securities Act of 1933. As such, it does not need approval from Securities and Exchange Commission (SEC).
Fox Business reported the news earlier Friday.
Securities will be cleared by Depository Trust Company (DTC), similar to RDC’s already existing offers of Bitcoin (BTC) and Ether (ETH), supported securities.
In a press release in January 2024, RDC founder and CEO Ankit Mehta said the use of deposit revenue brings many benefits, such as their “tested and true structure, giving direct ownership of the underlying asset and easy inclusion in institutional products.”
Several companies have taken steps to bring XRP to an institutional audience as the original cryptocurrency of the Ripple network has seen huge growth in the past year. Several asset leaders and stock -traded fund (ETF) providers have applied for ETFs that track the price of XRP.
The difference between an ETF and depositary receipts is that although shares in a potential XRP ETF would be redeemed for cash, deposit revenue would offer direct ownership of cryptocurrency.
