XRP DRS to offer investors exposure to Ripple’s token without crypto exchanges
Ripple continues expansion
Ripple plans to launch XRP depository receipts, bridging traditional and crypto finance
Ripple is set to offer qualified investors a new way to acquire XRP without using crypto exchanges. According to Fox Business journalist Eleanor Terrett, Ripple plans to launch XRP Depository Receipts (DRS) through a Depository Corporation (RDC) and Digital Wealth Partners (DWP).
“Similar to traditional ADRs (American Depository Receipts) representing shares of foreign companies, XRP DRS will represent ownership in the underlying XRP without the need for investors to buy the asset directly through a crypto exchange. The advantages are akin to those of ETFs, where investors can access an asset without buying it directly from a foreign or crypto exchange,” Terrett wrote on her X page, adding that “this is another way to bridge the gap between TradFi and DeFi.”
Loading...
The depository receipts will represent ownership of acquired XRP, with the tokens being controlled by a federally regulated bank in Anchorage.
The announcement also states that DRS holders will benefit from price movements, similar to exchange-traded funds (ETFs) through Digital Wealth Partners.
Registration process ahead
However, before the DRS can launch, they must be approved by the Securities and Exchange Commission (SEC).
For this, Ripple will need to file a Form S-1 with the SEC, which includes detailed information on custodianship, market oversight, and risk disclosures.
The SEC will need to ensure that Anchorage can reliably hold XRP and that investors are protected from market manipulation. The SEC will also want to know how Ripple plans to manage XRP price fluctuations and mitigate technical risks associated with its blockchain.
As we wrote, Ripple, a major cryptocurrency company, has ignited heated debates within the crypto community over its push for a multi-coin U.S. strategic reserve, which includes its own digital asset, XRP.
