- Former Citigroup Inc. executives have introduced Bitcoin depositary receipts (BTC DRs), a novel financial instrument providing institutional investors direct access to Bitcoin securities.
- RDC’s BTC DRs aim to bridge the gap between digital assets and established financial systems, offering a more direct ownership model than traditional Bitcoin ETFs.
Breaking away from conventional regulatory routes, a cohort of former Citigroup Inc. executives has unveiled an unconventional financial instrument: Bitcoin depositary receipts (BTC DRs). This pioneering initiative marks a significant stride in bridging the gap between the burgeoning digital asset realm and established financial structures.
BTC DRs, akin to American depositary receipts enabling U.S. investment in foreign stocks, offer institutional investors direct entry to Bitcoin securities. These instruments operate through U.S.-regulated market infrastructure, ensuring clearance via the Depository Trust Co.
Ankit Mehta, CEO of Receipts Depositary Corporation (RDC) and former Citigroup executive, outlined the vision:
“OUR GOAL IS TO STREAMLINE BITCOIN OWNERSHIP FOR INSTITUTIONS LIKE HEDGE FUNDS, FAMILY OFFICES, AND LARGE INVESTORS BY TRANSFORMING IT INTO A DTC-ELIGIBLE SECURITY.”
Strategic Partnerships and Custodial Solutions
RDC collaborates with Broadridge Corporate Issuer Solutions as the transfer agent, while Anchorage Digital Bank National Association secures custody of the underlying Bitcoin. Bolstered by heavyweights like Franklin Templeton, BTIG, and Broadhaven Ventures, RDC’s BTC DRs promise to redefine institutional engagement with digital assets.
While Bitcoin ETFs seize market attention, RDC’s BTC DRs offer a distinct product. Unlike ETFs redeemed for cash, depositary receipts provide a more direct ownership model, addressing concerns of regulated institutions regarding security risks and regulatory ambiguity.
Convergence of Traditional and Digital Finance
Ishaan Narain, RDC co-founder, stresses the integration of robust market infrastructure into the digital asset sphere:
“WE AIM TO EMULATE THE SUCCESS OF TRADITIONAL FINANCIAL TOOLS IN A DIGITAL CONTEXT, ENSURING OUR PRODUCT MEETS STRINGENT REQUIREMENTS OF INSTITUTIONAL INVESTORS.”
RDC’s Bitcoin depositary receipts initiative signifies a pivotal development in the digital asset industry. It merges traditional financial mechanisms with cryptocurrency, offering institutional investment pathways in Bitcoin, free from standard regulatory constraints.
