Breaking Barriers: Citi Alumni-Led Startup Unveils SEC-Independent Bitcoin Securities Innovation

Receipts Depositary Corp. is poised to meet the rising demand for bitcoin investments among institutional investors, introducing an innovative alternative to traditional spot ETFs that sidesteps the need for SEC approval. Spearheaded by a group of former Citigroup executives, the startup plans to unveil bitcoin-backed securities, known as "BTC DRs" (Bitcoin Depositary Receipts), closely modeled after the structure of American depositary receipts (ADRs) commonly used for foreign stocks on U.S. equity exchanges.

These BTC DRs will be made available to institutional investors and will undergo clearance through the Depository Trust Company (DTC), ensuring a streamlined process and facilitating direct ownership of bitcoin, according to a press release on Thursday.  The launch of this groundbreaking offering, exempt from Securities Act of 1933 registration, is anticipated to take place in the upcoming weeks.

Ankit Mehta, the Co-founder and CEO of Receipts Depositary Corp., underscored the advantages of utilizing depositary receipts. He emphasized their well-established structure, providing investors with direct ownership of the underlying asset, and their seamless integration into various institutional products.

Receipts Depositary Corp.'s initiative is driven by the objective to address the growing institutional demand for bitcoin investments, potentially offering a solution not met by the imminent arrival of a spot BTC ETF, which is expected to receive SEC approval in the near future. In a departure from bitcoin ETF shares, which are redeemable for cash, the depositary receipts present investors with a unique advantage – direct ownership of bitcoin.

To ensure the security and custody of the underlying bitcoin, Receipts Depositary Corp. has partnered with Anchorage Digital Bank National Association. This strategic collaboration adds an extra layer of confidence for investors engaging with the innovative BTC DRs.

In summary, Receipts Depositary Corp. is carving out a niche in the evolving landscape of bitcoin investments, catering to institutional needs with its inventive BTC DRs. By offering direct ownership and bypassing the need for SEC approval, the startup aims to provide a compelling option in the face of the anticipated spot BTC ETF. The collaboration with Anchorage Digital Bank National Association further solidifies the credibility of this forward-thinking approach to bitcoin-backed securities.

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