Citi Alumni-Founded Startup to Offer Bitcoin Securities That Don't Need Green Light From SEC: Bloomberg
Summary
Former Citigroup executives are planning to offer bitcoin-backed securities through Receipts Depositary Corp. (RDC). These securities, known as "BTC DRs", will be similar to American depositary receipts (ADRs) that represent foreign stocks on U.S. equity exchanges. RDC will offer these to institutions and clear them through the Depository Trust Company (DTC). The transactions will be exempt from registration under the Securities Act of 1933. The aim is to satisfy institutional demand for bitcoin investments not met by a spot exchange-traded fund (ETF). Unlike shares in bitcoin ETFs, which are redeemed for cash, depositary receipts will offer direct ownership of bitcoin.
