Former Citigroup Executives Unveil First Bitcoin Depositary Receipt
Receipts Depositary Corporation (RDC), a startup founded by former Citigroup executives, has introduced the “first-ever bitcoin depositary receipt (BTC DR).”
BTC DRs, similar to American Depositary Receipts (ADRs) for foreign stocks, operate within the U.S.-regulated market infrastructure and clear through the Depository Trust Company (DTC). RDC plans to issue the first BTC DRs in transactions exempt from registration under the Securities Act of 1933 to qualified institutional buyers (QIBs) in the coming weeks. Supported by major institutions like Franklin Templeton, BTIG, and Broadhaven Ventures, RDC has Broadridge Corporate Issuer Solutions as its transfer agent, and Anchorage Digital Bank National Association as the custodian of bitcoin.
Anchorage Digital independently announced its partnership with RDC, emphasizing its role as the first OCC-chartered digital asset bank. Ankit Mehta, RDC’s co-founder and CEO, stated that the offering aims to be a “complementary” product to spot bitcoin exchange-traded funds (ETFs), anticipating SEC approval for such ETFs early next week. Mehta highlighted RDC’s role as a conversion tool for asset owners, providing a means for institutions to convert bitcoin into a DTC-eligible security for direct ownership in U.S. clearances.
Clever Robot News Desk 8th January 2024
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