Receipts Depositary Corp. (RDC), a start-up based by a bunch of former Citigroup executives, is planning to launch XRP-backed securities, in accordance with individuals acquainted with the matter.

It will give establishments entry to XRP (XRP) securities by way of U.S. regulated market infrastructure.

The corporate will supply depositary receipts much like the American depositary receipts (ADRs) that signify overseas shares on U.S. fairness exchanges.

The product can be provided to certified institutional consumers solely by way of transactions exempt from registration beneath the Securities Act of 1933. As such, it doesn’t want approval from the Securities and Change Fee (SEC).

Fox Enterprise reported the information earlier Friday.

The securities can be cleared by the Depository Belief Firm (DTC), much like RDC’s already present choices of bitcoin (BTC) and ether (ETH) backed securities.

In a press launch in January 2024, RDC founder and CEO Ankit Mehta, mentioned that utilizing depositary receipts brings many advantages, reminiscent of their “tried and true construction, offering direct possession of the underlying asset and simple inclusion in institutional merchandise.”

A number of firms have taken steps to convey XRP to an institutional crowd because the native cryptocurrency of the Ripple community has seen super progress over the previous 12 months. A number of asset managers and exchange-traded fund (ETF) suppliers have utilized for ETFs monitoring the worth of XRP.

The distinction between an ETF and depository receipts is that whereas shares in a possible XRP ETF can be redeemed for money, depositary receipts would supply direct possession of the cryptocurrency.