Receipts Depositary Corp. to Introduce XRP-Backed Securities
New Product Aims to Expand Institutional Access to Cryptocurrency
February 7, 2025 — Receipts Depositary Corp. (RDC), a startup established by a group of former Citigroup executives, is set to broaden its range of offerings by introducing XRP-backed securities. This development signals a growing interest in providing institutional investors with regulated access to cryptocurrencies, specifically through U.S. market infrastructures.
Overview of XRP-Backed Securities
According to sources acquainted with the matter, RDC is preparing to launch these XRP-backed securities designed for qualified institutional buyers. The securities will be fungible through U.S. regulated market structures, structured similarly to American Depositary Receipts (ADRs), which allow investors to buy shares in foreign companies listed in U.S. markets.
The introduction of XRP-backed securities comes in an environment where the native cryptocurrency of the Ripple network has experienced significant growth. As part of its strategy, RDC aims to leverage the existing demand in the institutional investment space, where various asset managers and exchange-traded fund (ETF) providers are increasingly keen on creating products linked to XRP.
Regulation and Trading
Under the proposed framework, these new securities will be offered in transactions that are exempt from registration with the Securities and Exchange Commission (SEC) under the Securities Act of 1933. As a result, RDC will not require SEC approval for these products, streamlining the process for institutional buyers who wish to invest in XRP.
The securities will be cleared by the Depository Trust Company (DTC), which is also responsible for the clearances of RDC’s existing bitcoin and ether-backed securities. RDC’s founder and CEO, Ankit Mehta, has previously highlighted the advantages of utilizing depositary receipts, noting their established structure that facilitates direct ownership of the underlying asset and enhances their suitability for institutional investment products.
Comparison with ETFs
A critical distinction between the upcoming XRP-backed securities and potential XRP ETFs lies in ownership structure. While shares in an XRP ETF would generally be redeemed for cash, the depositary receipts offered by RDC will provide direct ownership of the cryptocurrency itself. This difference could prove attractive for institutions looking to hold the actual asset rather than a cash equivalent.
Market Context
RDC’s announcement comes at a time when the cryptocurrency market is witnessing a surge in interest from institutional investors. The evolving landscape has seen multiple companies strive to extend XRP access to a broader audience. The ongoing discussions surrounding the establishment of XRP ETFs underscore the growing recognition of cryptocurrencies as viable investment vehicles.
As the market continues to mature, RDC’s initiative to introduce XRP-backed securities is expected to enhance accessibility for institutional investors, providing new avenues for participation in the cryptocurrency space.
About the Author
Helene Braun is a New York-based news reporter at CoinDesk, specializing in Wall Street developments, the rise of spot bitcoin ETFs, and updates on cryptocurrency exchanges. She is a co-host of CoinDesk’s Markets Daily show on Spotify and YouTube and holds a degree from New York University’s business and economic reporting program. Helene has contributed to platforms such as CBS News, Yahoo Finance, and Nasdaq TradeTalks, and she is an active investor in bitcoin and ether.
Conclusion
With Receipts Depositary Corp. positioned to roll out XRP-backed securities, the landscape of institutional cryptocurrency investment is set to evolve further, reflecting broader trends of innovation and regulatory adaptation within financial markets.
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