Startup Founded By Ex-Citigroup Execs To Launch Bitcoin-Backed Securities
Former Citigroup executives have introduced Bitcoin depositary receipts (BTC DRs) as an alternative to spot-Bitcoin exchange-traded funds (ETFs). The startup, Receipts Depositary Corporation (RDC), plans to issue the first BTC DRs to qualified global institutional investors, providing a regulated way to gain exposure to BTC. BTC DRs differ from ETFs in ownership structure and market infrastructure, aiming to address institutional hesitations about directly holding BTC. Broadridge Corporate Issuer Solutions will be the transfer agent, and Anchorage Digital Bank National Association will handle custody of the underlying Bitcoin. This initiative aims to provide institutional investors with direct exposure to BTC, overcoming challenges associated with crypto market infrastructure and regulatory uncertainties.
