Former Citigroup Executives Plan to Offer Bitcoin-Backed Securities Without SEC Approval

According to CoinDesk, a group of former Citigroup executives intends to offer bitcoin-backed securities without the need for approval from the U.S. Securities and Exchange Commission (SEC). Receipts Depositary Corp. (RDC) plans to offer depositary receipts similar to American depositary receipts (ADRs) that represent foreign stocks on U.S. equity exchanges. The 'BTC DRs' will be offered to institutions and cleared through the Depository Trust Company (DTC), as stated in a company release. RDC will provide bitcoin depositary receipts to investors in transactions exempt from registration under the Securities Act of 1933. RDC co-founder and CEO Ankit Mehta described the startup as 'a conversion tool for asset owners... that want to take their bitcoin and convert it into a DTC-eligible security and enjoy direct ownership in the U.S. clearances.' RDC aims to address the institutional demand for bitcoin investments that may not be satisfied by a spot exchange-traded fund (ETF). The SEC is expected to approve the listing of a spot BTC ETF in the U.S. soon. Unlike shares in bitcoin ETFs, which would be redeemed for cash, depositary receipts would offer direct ownership of bitcoin, according to Mehta.