As Ripple and XRP move closer to resolving their legal challenges, there has been a sharp increase in demand for this blockchain technology. It appears that various entities, including institutions, individuals, and governmental bodies, are all contributing to this surge in interest.
XRP DRs Catering to Accredited Investors
Following Cboe’s lead, the Digital Securities & Firm Receipts Depo (RDC) has emerged as a prominent player in the adoption of XRP. Recent reports suggest that RDC is gearing up to introduce XRP depository receipts in the US market.
According to sources from Fox Business, accredited investors will soon have the opportunity to acquire XRP through the depository receipts offered by RDC and DWP advisors.
This move represents a significant step for investors, local and international alike, who wish to possess XRP without relying on typical cryptocurrency exchanges.
XRP Depository Receipts enable investors to have ownership of XRP without the need to directly purchase the assets from crypto exchanges. This strategy mirrors the approach taken by traditional ADRs, where foreign institutions acquire shares of American companies on US exchanges. Similarly to ETFs, these DRs will simplify the process for institutional investors to gain exposure to XRP tokens.
Consequently, this recent development stands as a significant milestone in bridging the gap between Traditional Finance and Decentralized Finance.
To instill confidence and ensure security for institutional investors, Anchorage will be responsible for safeguarding XRP. Anchorage, a federally chartered bank regulated by the US Office of the Comptroller of the Currency (USOCC), specializes in securing crypto assets and ensuring compliance with legal standards for XRP.
Implications of XRP DR
This advancement holds paramount importance for investors as it allows them direct ownership of the asset, bypassing traditional financial intermediaries.
This aspect distinguishes XRP Depository Receipts from ETFs, which are closely affiliated with conventional financial systems, a feature that may not appeal to all investors.
Impact on XRP Price
Recent data indicates a significant decline in XRP’s value throughout the week, with a decrease of over 20% to reach $2.39 at the time of publication.
Therefore, this latest initiative is promising for XRP, opening doors for more investors to enter the market once again.
By providing new avenues for institutional investment in XRP, this initiative is poised to invigorate the number of active addresses. Notably, the network recently experienced a notable decline in active users, reaching monthly lows.
Given the current market conditions, XRP stands to benefit from this rejuvenation, especially with dwindling transaction volumes. A rising NVT Ratio is indicative of dwindling investor confidence and demand, calling for a market revitalization.
Thus, this development arrives at a critical juncture to reignite market interest and rebuild confidence among both large investors and retail traders.