Grayscale adds Anchorage Digital to its XRP ETF custody setup and enables in-kind GXRP creations and redemptions using XRP alongside cash orders
Grayscale has expanded the operating setup of its XRP ETF, allowing certain institutional participants to move XRP directly into and out of the fund while also adding Anchorage Digital Bank as another custodian
The changes give the Grayscale XRP Trust ETF (GXRP) more flexibility in how shares are created, redeemed, and backed by XRP
The update appears in an Oct. 5 prospectus supplement and related SEC filing. The changes were put in place after agreements signed on Sept. 29. GXRP trades on NYSE Arca
The biggest change concerns how new ETF shares can be created and existing shares redeemed
GXRP previously relied on cash orders. Under that structure, an Authorized Participant provided cash rather than delivering XRP directly
Now, eligible Authorized Participants or their designated firms can submit in-kind orders. For a creation, XRP is transferred directly to the trust and corresponding GXRP shares are issued
For a redemption, the process works in reverse, allowing XRP to leave the trust in exchange for redeemed shares. Cash orders remain available
This does not mean ordinary GXRP shareholders can take their shares to Grayscale and withdraw XRP
The in-kind mechanism operates through Authorized Participants. Grayscale’s filing names Macquarie Capital (USA) and Virtu Americas among firms whose agreements were amended to support the process
For XRP, the change is notable because the primary-market process can now involve the asset itself rather than requiring every creation or redemption to begin with cash
Grayscale also added Anchorage Digital Bank as an additional custodian for GXRP’s XRP holdings
Coinbase Custody remains the fund’s primary custodian, so Grayscale is not replacing its existing custody arrangement. Instead, the sponsor can divide XRP between the two custodians at its discretion
Grayscale has not yet disclosed how much XRP it intends to move to Anchorage
The filing says XRP held with Anchorage is expected to remain in cold storage, although some tokens may temporarily move through hot wallets when needed for creations, redemptions, or trust expenses. Grayscale described the extra custodian as part of its risk-management approach as the trust grows
The two changes affect different parts of GXRP’s infrastructure: Anchorage expands custody options, while in-kind creation and redemption changes how institutional participants can move XRP against ETF shares
