XRP Depository Receipts to Be Offered to Accredited Investors
According to Fox Business, XRP Deposit Receipts (DRS) will be purchased soon through accredited investors through receipts and DWP Advisors. This new financial product provides investors with a regulated way to buy cryptocurrencies directly from exchanges, thus catching the risk of XRP.
The concept of XRP DRS is similar to the traditional American deposit income (ADR), which represents shares in foreign companies listed on U.S. exchanges. XRP DRS will represent ownership of the underlying XRP, providing investors with an easy way to trade assets that do not directly on crypto exchanges.
These DRSs offer similar benefits to exchange-traded funds (ETFs), making crypto assets more accessible to institutional investors. The launch is considered an important step to bridge the gap between traditional finance (TradFI) and decentralized finance (DEFI) as it makes digital assets more accessible to a wider audience.
Guardianship and regulations: Anchor and OCC
The XRP DRS will be held by Anchorage, a federal chartered bank regulated by the Office of the U.S. Office of the Master Calculator (OCC). Anchorage is a trusted institution specializing in the security custody of crypto assets, ensuring that the XRP behind DRS is managed securely within a regulated framework. This adds security and confidence to institutional investors looking to enter the cryptocurrency space.
Expand the product
The company receipt storage company (RDC) behind XRP-backed securities has been steadily expanding its products. This expansion provides institutional investors with more ways to participate in cryptocurrencies in a regular market environment.
Advantages of XRP Deposit Receipt
Unlike ETFs, stocks are redeemed for cash, and XRP DRS provides an approved investor with direct ownership of XRP. This gives investors the opportunity to hold assets directly while benefiting from structured and regulated investment vehicles. This difference can attract institutions seeking to own digital assets directly but need to comply with traditional financial market regulations.
