Startup Founded by Citi Alumni to Launch XRP-Backed Securities

Receipts Depositary Corp. (RDC), a start-up founded by a radical of erstwhile Citigroup executives, is readying to motorboat XRP-backed securities, according to radical acquainted with the matter.

This volition springiness institutions entree to XRP (XRP) securities done U.S. regulated marketplace infrastructure.

The institution volition connection depositary receipts akin to the American depositary receipts (ADRs) that correspond overseas stocks connected U.S. equity exchanges.

The merchandise volition beryllium offered to qualified organization buyers lone via transactions exempt from registration nether the Securities Act of 1933. As such, it does not request support from the Securities and Exchange Commission (SEC).

Fox Business reported the quality earlier Friday.

The securities volition beryllium cleared by the Depository Trust Company (DTC), akin to RDC’s already existing offerings of bitcoin (BTC) and ether (ETH) backed securities.

In a property merchandise successful January 2024, RDC laminitis and CEO Ankit Mehta, said that utilizing depositary receipts brings galore benefits, specified arsenic their “tried and existent structure, providing nonstop ownership of the underlying plus and casual inclusion successful organization products.”

Several companies person taken steps to bring XRP to an organization assemblage arsenic the autochthonal cryptocurrency of the Ripple web has seen tremendous maturation implicit the past year. Several plus managers and exchange-traded money (ETF) providers person applied for ETFs tracking the terms of XRP.

The quality betwixt an ETF and depository receipts is that portion shares successful a imaginable XRP ETF would beryllium redeemed for cash, depositary receipts would connection nonstop ownership of the cryptocurrency.