Depositary Receipts Corp. (RDC), a start -up established by a group of former Citigroup executives, is planning to launch security supported by XRP, according to people familiar with this matter.
This will provide access to XRP (XRP) access to security through the US market regulated infrastructure.
The company will offer deposit receipts similar to American deposit receipts (ADRS) representing foreign stocks in US equity exchange.
Offered the product to qualified institution buyers only through transactions Exempt from registration Under the Securities Act of 1933. As such, it does not require approval from the Securities and Exchange Commission (SEC).
Fox Business reported the news last Friday.
Security is to be cleared by the Depository Trust Company (DTC), similar to the existing RDC offerings of Bitcoin (BTC) and Ether (ETH) security.
In a press release in January 2024, RDC founder and CEO Ankit Mehta said that the use of deposit receipts brings many benefits, such as their “tried and real structure, providing direct compassion – owned by the underlying property and easy to integrate with institutional products. “
Many companies have taken steps to bring the XRP to an institutional crowd because the native cryptocurrency of the Ripple Network has seen intense growth in the last year. There are many asset managers and fundraising (ETFs) applying for monitoring of ETFs of XRP prices.
The difference between an ETF and deposit receipts is that while shares in a potential XRP ETF will be redeemed for cash, deposits receipt will offer direct cries of cryptocurrency.
