New Bitcoin-Backed Securities Don’t Need SEC Approval
A group of former Citigroup executives have launched a startup called Receipts Depository Corporation (RDC) that offers Bitcoin-backed securities without requiring approval from the US Securities and Exchange Commission (SEC). The company aims to cater to institutional investors who are interested in Bitcoin investments but may not have access to spot BTC exchange-traded funds (ETFs).
RDC will provide institutional clients with Bitcoin depository receipts similar to American depositary receipts (ADRs) that represent foreign stocks. These Bitcoin depository receipts will operate within US-regulated market infrastructure and be cleared through The Depository Trust Company (DTC). The startup plans to issue the first Bitcoin depository receipts to qualified institutional buyers (QIBs) in the coming weeks.
Catering to Institutional Investors
RDC’s CEO, Ankit Mehta, expressed excitement about providing qualified institutional buyers with secure and regulated access to digital assets through Bitcoin depository receipts. Mehta highlighted the benefits of using depositary receipts, including their established structure, direct ownership of the underlying asset, and easy inclusion in institutional products. RDC was established to meet the institutional demand for Bitcoin investments that may not be fulfilled by a spot BTC ETF approved by the SEC.
According to Mehta, Bitcoin ETF shares can be redeemed for cash, while depository receipts offer direct ownership of BTC.
Hot Take: Former Citigroup Executives Launch Bitcoin-Backed Securities Without SEC Approval
A group of former Citigroup executives has founded Receipts Depository Corporation (RDC), a startup that offers Bitcoin-backed securities without needing approval from the US Securities and Exchange Commission (SEC). RDC aims to cater to institutional investors seeking Bitcoin investments that may not be available through spot BTC exchange-traded funds (ETFs). The company will provide Bitcoin depository receipts, similar to American depositary receipts (ADRs), to institutional clients. These receipts operate within US-regulated market infrastructure and are cleared through The Depository Trust Company (DTC). RDC, backed by Franklin Templeton, BTIG, and Broadhaven Ventures, plans to issue the first Bitcoin depository receipts to qualified institutional buyers (QIBs) in the coming weeks.
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