A group of former Citigroup executives has founded Receipts Depositary Corp. (RDC), a startup that is expanding its product suite by launching XRP-backed securities. This move will provide institutions with access to XRP securities through U.S. regulated market infrastructure, offering depositary receipts akin to American depositary receipts (ADRs) that represent foreign stocks on U.S. equity exchanges. The product will be exclusively available to qualified institutional buyers through transactions exempt from registration under the Securities Act of 1933, bypassing the need for approval from the Securities and Exchange Commission (SEC). The news was reported by Fox Business on February 7, 2025.
The Vision Behind RDC’s XRP-backed Securities
In January 2024, RDC’s founder and CEO Ankit Mehta highlighted the advantages of using depositary receipts, emphasizing their established structure that allows for direct ownership of the underlying asset and seamless inclusion in institutional products. This strategic move reflects RDC’s aim to cater to the evolving needs of the institutional crowd, aligning with the broader trend of bringing XRP to a more mainstream audience. The decision to introduce XRP-backed securities complements RDC’s existing offerings of bitcoin and ether-backed securities, with the added assurance of clearance by the Depository Trust Company (DTC).
The Growing Interest in XRP and Institutional Investment
XRP, as the native cryptocurrency of the Ripple network, has witnessed significant growth in recent times, prompting various asset managers and exchange-traded fund (ETF) providers to explore opportunities in this space. While the concept of an XRP ETF has garnered attention, RDC’s approach stands out for its focus on offering direct ownership of the cryptocurrency through depositary receipts. This distinction underscores the company’s commitment to providing institutional investors with diverse avenues for exposure to digital assets, reflecting a broader shift towards embracing cryptocurrencies within traditional financial frameworks.
As the financial landscape continues to evolve, initiatives like RDC’s foray into XRP-backed securities exemplify the intersection of traditional finance and digital currencies. The involvement of seasoned professionals from Citigroup adds a layer of credibility to this venture, signaling a growing acceptance of cryptocurrencies within established financial circles. By leveraging the convenience and security of regulated market infrastructure, RDC is poised to carve a unique niche in the burgeoning market for digital asset securities, bridging the gap between traditional investment instruments and emerging blockchain technologies. Through this innovative approach, RDC is not only expanding its product offerings but also opening up new possibilities for institutional investors seeking exposure to the dynamic world of cryptocurrencies.
Helene Braun, a respected news reporter at CoinDesk, captures the essence of this transformative shift, shedding light on the rising prominence of digital assets in Wall Street circles. As a recent graduate of New York University’s business and economic reporting program, Helene brings a fresh perspective to the evolving landscape of crypto exchanges and ETFs, offering valuable insights into the intricate dynamics shaping the future of finance. With a keen eye for market trends and a knack for translating complex concepts into digestible news segments, Helene’s contributions to the financial news sphere underscore the growing influence of digital currencies in mainstream investment discourse. Her dedication to covering Wall Street developments and the proliferation of spot bitcoin ETFs underscores the broader narrative of financial innovation and technological disruption reshaping traditional paradigms of investment and wealth management.
By delving into the world of XRP-backed securities through RDC’s innovative platform, investors can gain a deeper understanding of the evolving landscape of digital asset investment, unlocking new possibilities for diversification and growth in an ever-changing financial ecosystem. As RDC continues to push the boundaries of traditional finance with its forward-thinking approach to digital asset securities, the future of institutional investment is poised for a transformative journey into the realm of blockchain innovation and decentralized finance.
