Franklin Templeton-backed Firm to Launch Bitcoin-Based Security Product
Receipts Depositary Corporation (RDC), backed by Franklin Templeton, BTIG, and Broadhaven Ventures, plans to introduce a bitcoin-based security product that is exempt from SEC registration. The firm aims to issue the first BTC depositary receipts (DRs) to qualified institutional buyers (QIBs) in the coming weeks. QIBs are financially sophisticated entities that can trade securities not registered with the SEC. The BTC DRs follow the same structure as American Depositary Receipts (ADRs), which allow US investors to trade shares of foreign companies on US stock exchanges.
How BTC DRs Work
RDC has partnered with Broadridge Corporate Issuer Solutions as the SEC-registered transfer agent and Anchorage Digital as the custody provider. Anchorage Digital will hold the bitcoin in custody in a bankruptcy remote structure, ensuring that the DRs are fully backed by bitcoin and cannot be lent, re-hypothecated, or pledged. The BTC DRs operate within US regulated market infrastructure and are cleared via The Depository Trust Company.
Race for a Spot Bitcoin ETF
The crypto industry has long sought approval for a spot bitcoin exchange-traded fund (ETF) from the SEC. Franklin Templeton is one of 14 asset managers, including BlackRock, Fidelity, Valkyrie, and VanEck, competing for approval. Franklin Templeton’s proposed Bitcoin ETF would primarily consist of bitcoin held by Coinbase Custody Trust Company and would be listed on the Cboe BZX Exchange if approved.
Hot Take: Franklin Templeton-Backed RDC Launches Bitcoin-Based Security Product
Receipts Depositary Corporation (RDC), supported by Franklin Templeton, is set to introduce a bitcoin-based security product that is exempt from SEC registration. This move comes as the race for a spot bitcoin ETF continues, with multiple asset managers vying for SEC approval. RDC’s BTC depositary receipts (DRs) offer qualified institutional buyers (QIBs) regulated access to digital assets. The BTC DRs operate within US market infrastructure and are fully backed by bitcoin held in custody by Anchorage Digital. If successful, this launch could pave the way for further alternative asset securities in the future.
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