XRP is making significant progress toward mainstream financial markets as accredited investors in the U.S. will soon be able to invest in the coin through depository receipts (DRs). According to Fox Business, Eleanor Terrett reported on X that RDC and Digital Wealth Partners will facilitate access to XRP DRs, allowing institutional and high-net-worth investors to gain exposure to the asset without engaging directly with cryptocurrency exchanges.
Depository receipts are a common financial instrument that provides indirect ownership of an underlying asset. They operate similarly to American Depository Receipts (ADRs), which enable investors to hold shares of foreign companies without purchasing them on international exchanges. In this case, XRP DRs will serve as a structured investment vehicle for those looking to participate in the crypto market while maintaining compliance with regulatory standards.
To ensure security and regulatory oversight, Anchorage Digital, a federally chartered bank regulated by the Office of the Comptroller of the Currency (OCC), will custody the depository receipts. This initiative reflects the growing trend of integrating digital assets with traditional financial infrastructure, creating a more accessible and regulated pathway for institutional participation in the cryptocurrency market.
Regulatory Developments and Market Momentum
Ripple is reportedly on the verge of securing approval for a new stablecoin, RLUSD in addition to the introduction of depository receipts, from the New York Department of Financial Services (NYDFS). Fox Business recently reported that this regulatory approval could be imminent, if approved, it would mark a significant milestone for Ripple and further solidify the token’s role in the digital asset ecosystem.
The asset has already demonstrated strong market performance in recent months. XRP experienced a 20% price increase during the thanksgiving weekend, adding to a broader 200% surge since October. As a result, the asset has maintained its position as the fifth-largest cryptocurrency by market capitalization, with an estimated value of $108 billion.
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ETFs Gain Traction Amid Institutional Interest
Alongside depository receipts, the push for XRP exchange-traded funds (ETFs) continues to gain momentum in the U.S. The Chicago Board Options Exchange (CBOE) has submitted multiple 19b-4 filings in the interest of asset managers Bitwise and Canary Capital, marking an important step in the regulatory approval process. These applications require formal acknowledgment from the Securities and Exchange Commission (SEC), which then has up to 240 days to issue a decision.
Bitwise was among the first firms to seek approval for an XRP ETF in October 2024, followed by Canary Capital. Grayscale, the world’s largest crypto asset manager recently applied to convert its existing XRP Trust into an ETF. Despite the SEC approving previous filings , the SEC is yet to acknowledge the latest ones, leaving market participants awaiting regulatory clarity on whether XRP ETFs will be approved.
Depository receipts offer a new way to invest in XRP, pending regulatory approvals could further expand its role in financial markets. The growing interest in ETFs reflects increasing institutional demand. These developments suggest that the token is becoming more integrated into traditional investment markets while regulatory decisions will ultimately shape its future.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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