Former Citigroup Executives and Franklin Templeton to Offer Bitcoin Securities
A group of former Citigroup executives, along with Franklin Templeton, BTIG, and Broadhaven Ventures, are planning to introduce securities backed by Bitcoin that do not require approval from U.S. regulators. This alternative approach aims to provide exposure to BTC while the debate over spot Bitcoin ETFs continues.
Introducing Bitcoin Depositary Receipts
The new product, called Bitcoin depositary receipts (BTC DRs), functions similarly to American depositary receipts for foreign stocks. Receipts Depositary Corporation (RDC) will issue the initial BTC DRs to qualified institutional investors through transactions exempt from registration requirements.
RDC’s BTC DRs will offer institutional access to Bitcoin securities within the regulated U.S. market infrastructure and clearance through the Depository Trust Co., allowing direct ownership in the U.S. clearance process.
Conversion Tool for Institutional Investors
RDC’s CEO, Ankit Mehta, highlights the platform as a conversion tool for hedge funds, family offices, corporations, and large institutional investors. It enables the conversion of Bitcoin into DTC-eligible security. Broadridge Corporate Issuer Solutions serves as the transfer agent, while Anchorage Digital Bank National Association handles custody of the underlying Bitcoin.
Complementary to Potential Bitcoin ETFs
RDC’s offering is positioned as complementary to potential Bitcoin ETFs and has the support of investors like Franklin Templeton, BTIG, and Broadhaven Ventures. The company expects approval from the U.S. Securities and Exchange Commission.
Bitcoin Depositary Receipts vs. Spot Bitcoin ETFs
Bitcoin depositary receipts provide qualified institutions with direct ownership of Bitcoin, unlike BTC ETFs that are redeemed for cash. The approval of spot Bitcoin ETFs has been a major focus in the cryptocurrency market, with the SEC’s decision being closely watched.
If a spot Bitcoin ETF is rejected this month, it is more likely due to the SEC seeking additional time for evaluation rather than an outright denial.
Hot Take: Former Citigroup Executives and Franklin Templeton Introduce Bitcoin Securities
A group of former Citigroup executives, along with Franklin Templeton, BTIG, and Broadhaven Ventures, have announced their plan to offer securities backed by Bitcoin. This new product, called Bitcoin depositary receipts (BTC DRs), aims to provide institutional access to Bitcoin securities within the U.S. regulated market infrastructure. The BTC DRs will be issued by Receipts Depositary Corporation (RDC) and will allow qualified global institutional investors to have direct ownership of Bitcoin through transactions exempt from registration requirements. Supported by prominent investors, RDC’s offering is positioned as complementary to potential Bitcoin ETFs and expects approval from the U.S. Securities and Exchange Commission. This development comes at a time when the approval of spot Bitcoin ETFs is eagerly awaited in the cryptocurrency market.
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