- Former Citigroup Inc. executives plan to introduce Bitcoin-backed securities, termed Bitcoin depositary receipts (DRs), bypassing SEC regulations.
- These DRs aim to provide institutional investors a regulated framework for direct ownership of Bitcoin securities within the U.S. clearance systems.
In a groundbreaking move, a team of former Citigroup Inc. executives has unveiled plans to introduce Bitcoin-backed securities, named Bitcoin depositary receipts (DRs), sidestepping the regulatory landscape of the U.S. Securities and Exchange Commission (SEC). This innovative venture has stirred considerable interest within the crypto sphere, particularly amid ongoing speculation regarding the SEC’s stance on a Bitcoin Spot ETF.
The proposed Bitcoin DRs draw a parallel to American depositary receipts representing foreign stocks. Spearheaded by the startup Receipts Depositary Corporation (RDC), these DRs aim to target qualified global institutional investors, strategically evading the traditional registration requisites under the Securities Act of 1933.
The BTC DRs are architectured to provide institutional access to Bitcoin securities within a U.S.-regulated market framework, sanctioned by the Depository Trust Co. Ankita Mehta, co-founder of RDC and a former Citigroup executive, envisions these DRs serving as a conversion tool for asset owners such as hedge funds and family offices. This strategy aims to convert Bitcoin holdings into DTC-eligible securities, enabling direct ownership within U.S. clearance systems.
Broadridge Corporate Solutions is designated as the transfer agent, while Anchorage Digital Bank National Association manages custody for the underlying Bitcoin in RDC’s offering. Notable investors such as Franklin Templeton, BTIG, and Broadhaven Ventures have pledged their support for this innovative financial product.
An Alternative in ETF Uncertainties
Amid the industry’s anticipation of potential spot Bitcoin ETF approvals, RDC’s Bitcoin DRs present an enticing alternative. They provide certified institutions a direct route to Bitcoin ownership, distinguishing themselves from traditional ETFs typically redeemed for cash.
As of the report, Bitcoin has experienced a 5.23% decline in the past 24 hours, valuing at $42,955.06. This downturn, alongside a weekly 0.51% fall and a 59.78% surge in 24-hour trading volume, indicates heightened market activity and investor interest following this development.
