A group of former Citigroup executives have launched a new investment offering called Bitcoin depositary receipts, which they claim do not require approval from the US Securities and Exchange Commission (SEC). The founders of Receipts Depositary Corporation (RDC) – Bryant Kim, Ankit Mehta, and Ishaan Narain – were part of the Citi team that explored depositary receipts for different asset classes in 2018.
These Bitcoin depositary receipts are similar to American depositary receipts, allowing Americans to invest in foreign stocks. They will enable qualified institutional investors to invest in Bitcoin without directly dealing with the cryptocurrency, addressing concerns about regulation and security risks associated with spot ETFs.
RDC has partnered with Broadridge Corporate Issuer Solutions and Anchorage Digital Bank National Association to act as the transfer agent and custody the underlying BTC tokens, respectively. While Mehta acknowledges the significance of a spot BTC ETF, he believes that depositary receipts will complement the ETF and primarily target institutional investors.
According to Diogo Monica, President and co-founder of Anchorage Digital, bringing market standards from traditional finance to the digital asset ecosystem, such as depositary receipts, will be a major theme in 2024. Bitcoin depositary receipts offer traditional institutions the opportunity for direct exposure to Bitcoin while mitigating regulatory uncertainty.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | |
| Sentiment | neutral |
| Relevance Score | 1 |
| People | Bryant Kim, Ishaan Narain, Ankit Mehta |
| Companies | Anchorage Digital Bank National Association, Receipts Depositary Corporation (RDC), Broadridge Corporate Issuer Solutions |
| Currencies | Bitcoin |
| Securities | None |
