Receipts Depositary Corp. (RDC), a start-up founded by former Citigroup executives, is planning to launch XRP-backed securities. These securities will give institutional buyers access to XRP through regulated market infrastructure in the U.S. The company will offer depositary receipts similar to American depositary receipts (ADRs) for foreign stocks. The product will be available to qualified institutional buyers through exempt transactions under the Securities Act of 1933, so it does not require approval from the SEC. The securities will be cleared by the Depository Trust Company (DTC), similar to RDC's existing offerings of bitcoin and ether-backed securities. This move comes as several companies aim to bring XRP to institutional investors, with some applying for ETFs tracking the cryptocurrency's price. The difference between an ETF and depositary receipts is that while ETF shares can be redeemed for cash, depositary receipts offer direct ownership of the cryptocurrency.



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