Former Citigroup Executives Launch Bitcoin Depositary Receipts
A group of former Citigroup executives has introduced a new offering called Bitcoin depositary receipts (BTC DRs), which are securities backed by Bitcoin. These BTC DRs function similarly to American depositary receipts for foreign stocks. The startup behind the offering, Receipts Depositary Corporation (RDC), plans to issue the first BTC DRs to qualified global institutional investors in transactions exempt from registration under the Securities Act of 1933.
RDC’s BTC DRs will provide institutions with access to Bitcoin securities through US regulated market infrastructure and clearance via the Depository Trust Co. This allows asset owners, such as hedge funds, family offices, and large institutional investors, to convert their Bitcoin into DTC-eligible securities and enjoy direct ownership in US clearances.
Partnerships and Backing
Broadridge Corporate Issuer Solutions will serve as the transfer agent for RDC’s BTC DRs, while Anchorage Digital Bank National Association will handle custody of the underlying Bitcoin. RDC has secured investments from Franklin Templeton, BTIG, and Broadhaven Ventures.
Optimism over Spot-Bitcoin ETF Approval
The launch of BTC DRs comes at a time when speculation about the approval of spot-Bitcoin ETFs is at its peak. Bitcoin recently surpassed $45,000 for the first time in nearly two years, as optimism grew over the potential approval of exchange-traded funds that directly invest in the cryptocurrency. The introduction of BTC DRs offers another avenue for institutional investors to access and hold Bitcoin securely.
Hot Take: Former Citigroup Executives Introduce Bitcoin Depositary Receipts
A group of former Citigroup executives has launched a new financial product called Bitcoin depositary receipts (BTC DRs). These BTC DRs serve as securities backed by Bitcoin and allow institutions to access and hold the cryptocurrency securely. With partnerships in place for transfer agency services and custody, RDC, the startup behind the offering, aims to provide qualified global institutional investors with a way to convert their Bitcoin into DTC-eligible securities. This move comes amidst growing optimism surrounding the approval of spot-Bitcoin ETFs, as Bitcoin’s price continues to rise. The introduction of BTC DRs adds another option for institutional investors looking to participate in the crypto market.
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