A startup, Receipts Depositary Corp. (RDC), founded by former Citigroup executives, is set to launch XRP-backed securities. These securities will provide institutions with access to XRP through U.S. regulated market infrastructure. RDC will offer depositary receipts, similar to American depositary receipts (ADRs), which represent foreign stocks on U.S. equity exchanges. The product will be available only to qualified institutional buyers via transactions exempt from registration under the Securities Act of 1933, thus not requiring SEC approval. The securities will be cleared by the Depository Trust Company (DTC), just like RDC’s existing offerings of bitcoin and ether-backed securities. This move comes as XRP has seen significant growth over the past year, with several asset managers and ETF providers applying for ETFs tracking XRP’s price. Unlike ETFs, where shares are redeemed for cash, depositary receipts offer direct ownership of the cryptocurrency.
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