While the focus of investors and the market turned to the SEC's spot Bitcoin ETF decision, a new move came from a group of former executives of Citigroup.
According to Bloomberg, a group of former Citi executives decided to launch a product that is a Bitcoin-backed security that does not require SEC approval.
In the statement, it was stated that this Bitcoin-supported product, which is planned to be launched, is similar to spot Bitcoin ETFs, but does not require SEC approval.
This product, called “Bitcoin Depositary Receipts (BTC DR)”, is similar to American Depositary Receipts known as ADRs.
The name of the company that will issue BTC DR has been determined as “Receipts Depositary Corp (RDC). It was stated that former Citigroup executives Bryant Kim, Ishaan Narain and Ankit Mehta are among the founders of RDC.
The following statements were made in the statement:
“BTC DRs will be offered to institutional investors and approved through the Depository Trust Company (DTC), becoming a DTC-approved investment contract.
At this point, RDC will issue and offer BTC DRs to investors, which will be exempt from registration under the Securities Act of 1933.
BTC DRs will be offered to global and institutional company investors in the first phase.
“These Bitcoin-supported products will give corporate companies the opportunity to directly invest in Bitcoin.”
Finally, it was stated in the statement that the storage service of Bitcoins will be provided by Anchorage, also known as the crypto bank.
It was also stated that RDC company received investments from companies such as Franklin Templeton, BTIG and Broadhaven Ventures, which are among the important names of the cryptocurrency market.
*This is not investment advice.
