A group of former Citigroup executives have launched a startup to offer Bitcoin-backed securities that they claim do not require approval from the US Securities and Exchange Commission (SEC). The startup, named “Receipts Depository Corporation (RDC),” aims to cater to the institutional demand for Bitcoin investments that may not be met by spot Bitcoin exchange-traded funds (ETFs).
RDC plans to offer Bitcoin depository receipts to institutional clients, similar to American depositary receipts (ADRs) that represent foreign stocks. According to RDC’s press release, these Bitcoin depository receipts (BTC DRs) will operate within US-regulated market infrastructure and will be cleared through The Depository Trust Company (DTC).
The startup intends to issue the first BTC DRs to Qualified Institutional Buyers (QIBs) in transactions exempt from registration under the Securities Act of 1933. The offering, which is backed by Franklin Templeton, BTIG, and Broadhaven Ventures, is expected to commence in the coming weeks. Anchorage Digital Bank National Association will serve as the custodian of the underlying Bitcoin.
Ankit Mehta, co-founder and CEO of RDC, expressed his excitement about providing QIBs with secure, regulated access to digital assets via BTC DRs. He highlighted the benefits of using depositary receipts, such as their proven structure, direct ownership of the underlying asset, and easy inclusion in institutional products. He also noted that BTC DRs are universally fungible as QIBs can convert their Bitcoin holdings into DRs and vice versa.
RDC was established to address the institutional need for Bitcoin investments that a spot ETF may not necessarily meet if the SEC approves the listing of a spot Bitcoin ETF in the US. Mehta further explained to Bloomberg that while shares in Bitcoin ETFs may be redeemed for cash, depository receipts would offer direct ownership of Bitcoin.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | 🇺🇸 |
| Sentiment | neutral |
| Relevance Score | 1 |
| People | Ankit Mehta |
| Companies | The Depository Trust Company (DTC), Receipts Depository Corporation (RDC), Broadhaven Ventures, BTIG, Franklin Templeton, Anchorage Digital Bank National Association, Citigroup Inc. |
| Currencies | Bitcoin |
| Securities | None |
