TechFlow reported, according to Bloomberg, that Receipts Depositary Corporation (RDC), a startup founded by former Citigroup executives, plans to offer securities backed by Bitcoin, which they claim do not require approval from U.S. regulators.
Bitcoin depositary receipts are similar to American depositary receipts that represent foreign stocks. The company said it plans to issue the first batch of Bitcoin depositary receipts to qualified global institutional investors in transactions exempt from registration under the Securities Act of 1933.
"We are truly a conversion vehicle for today's asset owners—whether hedge funds, family offices, corporations, or large institutional investors—who want to convert their Bitcoin into DTC-eligible securities with direct ownership clearable in the U.S.," Ankit Mehta, co-founder and CEO of RDC and former Citigroup executive, said in an interview. Mehta said RDC's product would offer a "complementary" alternative to Bitcoin ETFs, providing qualified institutions with direct ownership of Bitcoin, unlike Bitcoin ETFs that settle in cash upon redemption.
