According to Fox Business correspondent Eleanor Terrett, accredited investors will soon have a new way to gain exposure to XRP without purchasing the coin directly.
Terrett recently revealed that XRP Depository Receipts (XRP DRs) are available for purchase through RDC and Digital Wealth Partners. The structure is similar to American Depository Receipts (ADRs) representing shares of foreign companies and allows investors to gain exposure to an asset without trading directly on cryptocurrency exchanges.
Terrett explained that XRP DRs are very similar to exchange-traded funds (ETFs) and offer an alternative for investors looking to access XRP through traditional finance (TradFi) channels. The receipts will be stored by Anchorage Digital, a federally chartered bank regulated by the Office of the Comptroller of the Currency (OCC).
“In short, it’s another way to bridge the gap between TradFi and DeFi,” Terrett said.
The launch of XRP DRs could increase institutional adoption of XRP by providing a regulatory-compliant investment vehicle for firms and high-net-worth individuals. However, while there have been applications for an XRP Spot ETF, it is unknown whether the SEC will approve these applications under the new administration.
*This is not investment advice.
Source: https://en.bitcoinsistemi.com/while-everyone-waits-for-xrp-spot-etf-approval-theres-another-positive-development-for-xrp/