For many investors, holding XRP directly in a private wallet seems like the most straightforward way to gain exposure to the digital asset. Yet, as the cryptocurrency market grows, not every investor wants autonomy and control. Some are looking for structure, regulation, and accountability.
That distinction formed the core of software engineer and XRP community figure Vincent Van Code’s recent remarks about the Grayscale XRP Trust, which he described as a vehicle “designed for institutions — funds, wealth managers, and family offices — that need to show regulators, auditors, and insurance firms that they’re playing by the book.”
Van Code’s perspective highlights the increasing participation of institutional investors who require regulated pathways to invest as an important factor behind XRP’s future growth potential. These investors represent large pools of capital that cannot enter the market through typical retail methods.
🤔 👀 A lot of people are asking me:
"Why would anyone buy the Grayscale XRP Trust when they could just hold XRP in their own wallet or use Coinbase Custody?"
Here’s the simple answer 👇
Grayscale’s XRP Trust isn’t made for everyday investors.
It’s designed for institutions —… https://t.co/jzNO63rxEd
— Vincent Van Code (@vincent_vancode) November 12, 2025
Institutional Access Through Regulation
According to Van Code, “most big investors can’t legally self-custody crypto.” While major institutional players are entering the XRP market, their internal compliance policies demand third-party custodianship, insurance, and audit verification.
The Grayscale XRP Trust satisfies those requirements by holding XRP through Coinbase Custody Trust Company, a New York State-regulated entity with insured cold storage and SOC certifications. Grayscale then manages valuation, accounting, and reporting to ensure transparency.
This structure makes it possible for institutional investors to gain exposure to XRP without directly holding the tokens. As Van Code explained, instead of “owning XRP,” these investors hold trust shares, which represent real XRP under regulated oversight.
A Pathway Toward Broader Market Integration
Van Code connected the trust model to the process that has already played out with Bitcoin. He described a progression from a private trust to an OTC product to an ETF, suggesting that XRP could follow a similar route as financial products mature.
The emergence of XRP trusts and potential exchange-traded funds gives institutions a compliant entry point, ultimately supporting price stability and market liquidity. This shift could bring long-term benefits to XRP’s market standing.
We are on X, follow us to connect with us :- @TimesTabloid1
— TimesTabloid (@TimesTabloid1) June 15, 2025
Institutional demand tends to favor assets that demonstrate regulatory clarity and operational transparency. The Grayscale XRP Trust, by offering a professionally managed, auditable investment structure, positions XRP to attract these investors.
Bridging Traditional Finance and Digital Assets
Van Code noted that “retail investors want control” while “institutions want compliance, insurance, and clean audits.” Their coexistence strengthens XRP by balancing liquidity from individuals with credibility from large investors.
As regulated products like the Grayscale XRP Trust grow, they pave the way for XRP ETFs, encouraging institutional participation, market stability, and integration with traditional financial systems.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are advised to conduct thorough research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
Follow us on X, Facebook, Telegram, and Google News
