- RDC introduces XRP DRs, offering indirect exposure to XRP’s price movements.
- Anchorage Digital’s role boosts trust and regulatory oversight for XRP DRs.
- Analysts see potential targets of $4.20, $5, or $6.60 for XRP.
Receipts Depositary Corporation (RDC) has just dropped the news about XRP Depositary Receipts (XRP DRs), a new financial tool that lets investors get in on XRP action without directly owning the cryptocurrency.
XRP DRs: Like ETFs, But for XRP Ownership
Similar to Exchange Traded Funds (ETFs) and American Depository Receipts (ADRs), XRP DRs will give investors the chance to profit from XRP’s future gains but without actually holding the asset itself.
This move is seen as a bridge between traditional finance and decentralized finance (DeFi), potentially opening up the crypto market to more institutional investors.
Related: Crypto’s Going Mainstream Faster Than the Internet Did
Anchorage Digital to Custody XRP DRs for Institutions
Anchorage Digital, a federally chartered digital asset bank, will serve as the custodian for these XRP DRs. This partnership suggests that the securities may be subject to strict regulatory oversight, which could increase trust from institutional investors.
Ankit Mehta, Co-Founder and CEO of RDC, said that XRP DRs are a step toward bringing digital assets into the mainstream financial ecosystem. “Qualifying investors now have the ability to own XRP using the same processes they trust for traditional securities. We are seeing more demand for digital asset DRs and are scaling our business accordingly,” Mehta said.
XRP Depositary Receipts Could Boost Demand
A few days ago, Fox Business journalist Eleanor Terrett had reported that Digital Wealth Partners (DWP) is also preparing to launch XRP Depository Receipts. Although the launch of XRP DRs may not immediately cause a major price surge, they represent a growing institutional interest in XRP and it could help increase liquidity and demand for XRP in the global market.
Related: XRP ETFs Edge Closer to SEC Approval Following Multiple 19b-4 Filings
Analysts predict that if XRP manages to push past its current support levels below $3, the potential for upward movement could remain intact, possibly reaching targets like $4.20, $5, or even $6.60. However, until a confirmed breakout occurs, a period of sideways movement may be expected.
At press time, XRP is trading at $2.50 and is up by more than 4.5% in the last 24 hours. XRP last traded above $3 on February 1, and according to crypto expert Ali Martinez, if XRP stays above $2.27, it could get the boost it needs for a bounce back toward $3.
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