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RDC offers XRP DRs that offer indirect exposure to XRP’s price movements.
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Anchorage Digital’s role boosts regulatory oversight and trust for XRP DRs.
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Analysts expect XRP to reach a target price of $4.20, $6.60, or $5.
Receipts Depositary Corporation has just announced XRP Depositary Receipts. This new financial instrument allows investors to participate in the XRP market without having to directly own the cryptocurrency.
XRP DRs are like ETFs but for XRP ownership
XRP DRs are similar to Exchange Traded Funds and American Depository Receipts. They allow investors to profit from XRP’s future gains without having to hold the asset.
This move is seen by many as a bridge to decentralized finance, which could potentially open up the crypto market for more institutional investors.
Related: Crypto’s Going Mainstream faster than the Internet Did
Anchorage Digital to Custody Institutional XRP DRs
Anchorage Digital, a federally-chartered digital asset bank will be the custodian of these XRP DRs. This partnership could indicate that securities are subject to strict regulation, which would increase trust among institutional investors.
Ankit Mehta said that XRP DRs were a step towards bringing digital assets to the mainstream financial ecosystem. “Qualifying Investors now have the option to own XRP by using the same process they trust for traditional security.” Mehta stated that the demand for digital assets DRs is increasing and we are scaling our business to meet this demand.
XRP depositary receipts could boost demand
Eleanor Terrett, a Fox Business journalist, reported a few days ago that Digital Wealth Partners is also preparing XRP Depository Receivables. The launch of XRP DRs is unlikely to cause a price spike, but it will show that there is a growing interest from institutions in XRP. This could increase demand and liquidity for XRP on the global market.
RelatedXRP ETFS Edge Closer to SEC approval Following Multiple 19b-4 Files
Analysts predict that if XRP is able to push through its current support levels under $3, then the potential for upward movement will remain intact. It could reach targets such as $4.20, $6.60, or $5. However, until there is a confirmed breakout, it may be possible to expect a period of sideways movements.
At the time of publication, XRP was trading at $2.50. It has gained more than 4.5% over the last 24 hour. XRP was last above $3 on January 1, and according crypto expert Ali Martinez if XRP remains above $2.27 it could get the boost needed for a rebound back towards $3.
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