According to PANews, a startup founded by former Citigroup executives, Receipts Depositary Corp. (RDC), is preparing to launch XRP-backed securities. This initiative aims to provide institutions access to XRP securities through U.S. regulated market infrastructure.
The company plans to offer depositary receipts similar to American Depositary Receipts (ADRs), which represent foreign stocks traded on U.S. stock exchanges. These products will be sold exclusively to qualified institutional investors under an exemption from registration as outlined in the Securities Act of 1933, thus bypassing the need for approval from the U.S. Securities and Exchange Commission (SEC). The securities will be cleared by the Depository Trust Company (DTC), following the model of RDC's existing Bitcoin and Ethereum-backed securities.