Crypto News – Receipts Depositary Corporation, supported by Franklin Templeton, intends to introduce a security product based on Bitcoin that does not need to be registered with the SEC.
Franklin Templeton-Backed RDC Spotlights New Goals for Bitcoin ETFs
The company stated that under the terms of the U.S. Securities Act of 1933, depositary receipts are free for eligible institutional buyers. It anticipates issuing these investors the first BTC DRs in the upcoming weeks. The BTC DRs are constructed similarly to American Depositary Receipts, which are shares of foreign stocks issued by banks, according to RDC, which also has support from BTIG and Broadhaven Ventures. Because ADRs are traded in US dollars on US stock exchanges, American investors can purchase and sell shares of overseas corporations more easily.
We are excited to provide qualified institutional buyers with the secure, regulated access to digital assets they have been waiting for via BTC DRs. There are many benefits to using depositary receipts, such as their tried and true structure, providing direct ownership of the underlying asset and easy inclusion in institutional products. BTC DRs are universally fungible as QIBs can convert their bitcoin holdings into DRs and vice versa.
Ankit Mehta, RDC co-founder and CEO
RDC Says BTC DRs Aren’t Just the Beginning
Although BTC DRs was RDC‘s initial product, the business claimed to be able to produce securities for additional alternative assets that qualified for clearinghouse treatment. According to RDC, qualified investors can now possess bitcoin utilizing the same technology, processes, and counterparty relationships that they use for traditional securities thanks to the BTC DRs, which are cleared through The Depository Trust Company and operate inside the framework of the United States’ regulated market infrastructure.
The RDC team has some of the strongest talent available in the highly technical world of depositary receipts With the underlying BTC safely stored via institutional-grade custody at Anchorage Digital Bank, we’re excited to help bring BTC to the securities ecosystem.
Diogo Mónica, Anchorage Digital president and co-founder
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