Receipts Depositary Corp. (RDC), founded by former Citigroup executives, plans to launch XRP-backed securities, expanding its offerings beyond bitcoin and ether-backed securities. This initiative aims to give institutions access to XRP through U.S. regulated market infrastructure. The XRP-backed securities will only be available to qualified institutional buyers via transactions under the Securities Act of 1933, eliminating the need for approval from the SEC. The securities, similar to American depositary receipts (ADRs) representing foreign stocks, will be cleared through the Depository Trust Company, facilitating direct ownership of the underlying asset. The introduction of these securities comes as XRP has gained significant traction, with several asset managers pursuing ETFs that track XRP's price. RDC envisions that depositary receipts will provide benefits over traditional ETFs, as they offer direct ownership instead of cash redemption upon share liquidation.

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