DAG Wealth has launched the XRP Lending Strategy, a new program allowing Qualified Clients to lend their existing XRP holdings to institutional borrowers. The initiative aims to provide easier access to institutional lending markets, which traditionally require participants to meet specific size or qualification criteria. Erin Friez, CEO of DAG Wealth, emphasized that while the strategy offers a structured way to utilize XRP holdings, clients should be aware of the risks, including counterparty risk, before participating.
Client XRP is held securely at Anchorage Digital Bank, a federally chartered Qualified Custodian, before any loan is executed. Once the loan is completed, the XRP is returned to the client’s custody account. During the loan period, the position is recorded in the client’s name within their separately managed account, ensuring visibility into their holdings and associated loan activity.
The program involves unsecured loans to institutional counterparties selected, vetted, and monitored by DAG Wealth. However, the due diligence and monitoring do not guarantee repayment. Borrowers may rehypothecate the XRP, meaning they can sell, lend, or pledge it further. Clients become general unsecured creditors with no claim on specific assets, and repayment depends on the solvency of the borrowers and downstream parties beyond their control.
Eligible DAG Wealth clients can consult with their advisors to assess the suitability of the program. More information is available on the company’s website, www.dag.com/wealth.