Citi Alumni Led Startup Unveils Bitcoin Securities Sans SEC Approval: Bloomberg Report

Crypto News- A group of former Citigroup bigwigs is making waves with their latest venture – bitcoin-backed securities that reportedly sidestep the cumbersome approval process of the U.S. Securities and Exchange Commission (SEC), according to a recent Bloomberg report.

Enter Receipts Depositary Corp. (RDC), a player ready to roll out depositary receipts, akin to those American depositary receipts (ADRs) that represent foreign stocks on U.S. equity exchanges. Branded as “BTC DRs,” these financial instruments are tailor-made for institutional investors and are set to undergo clearance via the Depository Trust Company (DTC), as per details from a company press release highlighted in the report.

Citi Alumni Led Startup Unveils Bitcoin Securities Sans SEC Approval: Bloomberg Report

RDC’s game plan involves furnishing investors with bitcoin depositary receipts through transactions that cleverly dodge the regulatory hoops of the Securities Act of 1933. Ankit Mehta, the brains behind RDC and its CEO, coined the startup as “a conversion tool for asset owners.” Essentially, it’s a solution for those looking to morph their bitcoin holdings into DTC-eligible securities, thus enabling direct ownership within the labyrinth of U.S. clearances.

Amidst the clamor for bitcoin investments from institutional quarters, not entirely satisfied by the traditional spot exchange-traded fund (ETF), RDC steps in as an intriguing alternative. Interestingly, the report notes that the U.S. SEC is expected to give the nod to a spot BTC ETF in the imminent future.

Distinguishing itself from the usual cash redemption routine associated with shares in bitcoin ETFs, RDC’s depositary receipts promise investors something unique – direct ownership of the coveted cryptocurrency, as elucidated by Mehta.