Institutions have the
Receipts Depositary Corp
for directly owning Bitcoin,
no need for SEC approval.
Screw the SEC
January 4th. 2024
DRs CAN BE USED FOR DIGITAL AND NON-DIGITAL ASSETS
BTC DRs are RDC’s first offering, but RDC is available to create clearinghouse-eligible securities for other alternative assets. The company’s three founders, Ankit Mehta, Bryant Kim and Ishaan Narain, each spent nearly a decade at a leading DR business, where they worked closely with issuers and investors to evolve DR market structure.
Ankit Mehta, co-founder and CEO of RDC
Receipts Depositary Corp.
A new Bitcoin investing paradigm is here. With our Bitcoin DR, Qualified Institutional Buyers can now directly own, convert and transfer Bitcoin as a DTC-eligible security.
The securities will be Bitcoin Depositary Receipts that function similar to American Depositary Receipts representing foreign stocks. According to the company, the BTC DR offering will provide institutions with access to securities through the US regulated market infrastructure and will be cleared through Depository Trust Co.
The key difference from a Bitcoin ETF
will be that depositary receipts offer direct ownership of BTC to qualified institutions, which RDC says will be the first of its kind to do so.
Citi Alumni-Founded Startup to Offer Bitcoin Securities That Don’t Need Green Light From SEC
Receipts Depositary Corp. aims to address the institutional desire for bitcoin investments that may not be satisfied by a spot ETF.
Whereas shares in bitcoin ETFs would be redeemed for cash,
depositary receipts would offer direct ownership of bitcoin, Mehta told Bloomberg, which reported the news earlier. Anchorage Digital Bank National Association will provide custody of the underlying bitcoin.
Receipts Depositary Corp. (RDC) will offer depositary receipts similar to the 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), according to a press release on Thursday.
Citi Alumni Plan Bitcoin Securities That Don’t Need SEC Approval
Designed to be exempt from registration under ‘33 Act
Depositary-receipt startup backed by Franklin Templeton, BTIG