- XRP depository receipts will soon start operating in the U.S market
- Receipts depository and DWAP advisors will provide the offering
With Ripple and XRP expected to see their legal woes end soon, the blockchain has seen its demand rise exponentially lately. In fact, one might argue that everyone, including institutions, individuals, and government agencies, are paving the way for the same.
XRP Depository Receipts for accredited investors
One of the latest institutions to make a significant move towards XRP after Cboe is the Digital Securities & Firm Receipts Depo (RDC). According to reports, RDC is set to launch XRP depository receipts in the United States.
According to Fox Business, the XRP depository will soon be available for purchase by accredited investors through receipts depository and DWP advisors.
This is a milestone for investors, both local and internal, who seek to own and purchase XRP without the use of usual crypto platforms.
XRP DR will offer the ownership of XRP without investors having to buy the assets directly from crypto exchanges. This approach takes the same path applied by traditional ADRs. In traditional set-up, foreign institutions acquire shares of American companies on U.S exchanges. Significantly, just like ETFs (exchange-traded funds), these DRs will make it easy for institutional investors to acquire XRP tokens.
Therefore, the latest development is a major milestone towards bridging the gap between TradFi and Decentralized Finance.
For security and safety confidence among institutional investors, Anchorage will hold XRP. In DRs context, Anchorage is a federally chartered bank that’s overseen by the U.S. Office of the Comptroller of Currency (USOCC). Equally, Anchorage secures crypto assets and will ensure XRP operates within legal frameworks.
What’s the significance of XRP DR
Notably, this development is crucial for investors as it allows the ownership of the asset directly, without dealing with traditional finance.
This aspect differentiates the DR from ETFs since the latter is connected with traditional finance, something that some investors could find unattractive.
What does it mean for XRP’s price?
On the price charts, XRP registered a strong decline over the week. In fact, it lost over 20% of its value to trade at $2.39 at press time.
Therefore, the latest development is good news for XRP as it offers room for more investors to re-enter the market.
Source: CryptoQuant
With new institutional investors getting a chance to invest in XRP, it will play a vital role in boosting active addresses. Recently, the network’s active users significantly dropped to hit a monthly low on the charts.
In light of the prevailing market conditions, XRP needs such a boost for the price to rebound, especially with transaction volume declining. This drop can be evidenced by a rising NVT Ratio. This metric, not only showed a lack of investor confidence, but also low demand.
Source: CryptoQuant
Hence, the new development comes at the right time to restore market demand and confidence among large and retailer traders.
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