Citigroup Alumni Launch Innovative Bitcoin-backed Securities

A cohort of former Citigroup executives is venturing into uncharted territory, introducing bitcoin-backed securities without seeking approval from the U.S. Securities and Exchange Commission (SEC).

Receipts Depositary Corp. (RDC) is set to unleash depositary receipts akin to American depositary receipts (ADRs), which represent foreign stocks on U.S. equity exchanges. Dubbed “BTC DRs,” these receipts will be targeted at institutions and will undergo clearance through the Depository Trust Company (DTC), as outlined in a recent press release.

RDC plans to roll out bitcoin depositary receipts in transactions exempt from registration under the Securities Act of 1933, with the offering slated to commence in the upcoming weeks. Ankit Mehta, the co-founder and CEO of RDC, highlighted the advantages of using depositary receipts, emphasizing their established structure, direct ownership of the underlying asset, and seamless integration into institutional products.

The move by RDC is a strategic response to institutional demand for bitcoin investments, aiming to fill a gap that a traditional spot exchange-traded fund (ETF) may not fully satisfy. Notably, the SEC is on the verge of greenlighting the listing of a spot BTC ETF in the U.S.

In a departure from the traditional approach where shares in bitcoin ETFs are redeemed for cash, these depositary receipts offer investors direct ownership of bitcoin. Anchorage Digital Bank National Association is set to provide custody for the underlying bitcoin, adding an extra layer of credibility to RDC’s groundbreaking initiative.

Subscribe

Related articles

Fed Moves Could Flood Crypto with Trillions

The cryptocurrency market is abuzz with speculation about the...

Crypto Titans Team Up to Tackle Scams

The cryptocurrency world has been buzzing with the news...

Binance Bounces Back in Florida

The cryptocurrency landscape in the United States saw a...

Bitcoin’s MetaMakeover

The cryptocurrency world witnessed an array of dynamic shifts...

Diamonds on the Blockchain: A New Era for Digital Payments

Diamond Standard Co. has unveiled an innovative blockchain payments...
Maria Irene
Maria Irenehttp://ledgerlife.io/
Maria Irene is a multi-faceted journalist with a focus on various domains including Cryptocurrency, NFTs, Real Estate, Energy, and Macroeconomics. With over a year of experience, she has produced an array of video content, news stories, and in-depth analyses. Her journalistic endeavours also involve a detailed exploration of the Australia-India partnership, pinpointing avenues for mutual collaboration. In addition to her work in journalism, Maria crafts easily digestible financial content for a specialised platform, demystifying complex economic theories for the layperson. She holds a strong belief that journalism should go beyond mere reporting; it should instigate meaningful discussions and effect change by spotlighting vital global issues. Committed to enriching public discourse, Maria aims to keep her audience not just well-informed, but also actively engaged across various platforms, encouraging them to partake in crucial global conversations.

LEAVE A REPLY

Please enter your comment!
Please enter your name here