Former Citi executive launches startup to offer Bitcoin securities without SEC approval

Receipts Depositary Corporation (RDC), a startup founded by former Citigroup executives, plans to offer securities backed by Bitcoin that do not require approval from US regulatory agencies. The newly issued product is called Bitcoin Depositary Receipts and will be similar to American Depositary Receipts representing foreign stocks. The company plans to issue the first batch of Bitcoin Depositary Receipts to qualified global institutional investors who meet the exemption requirements of the Securities Act of 1933.

According to a news release by the company, the issuance, called BTC DR, will allow institutions to obtain Bitcoin securities through US-regulated market infrastructure and settle through a custody trust company. Broadridge Corporate Issuer Solutions will act as the transfer agent, and Anchorage Digital Bank National Association will be responsible for the custody of the underlying Bitcoin.

RDC has received support from investors such as Franklin Templeton, BTIG, and Broadhaven Ventures, according to its news release. Ankit Mehta, RDC's co-founder and CEO and former Citigroup executive, said, "We are indeed a conversion tool for today's asset owners, whether they are hedge funds, family offices, corporations, or large institutional investors. They want to convert their Bitcoin into securities that qualify for DTC and have direct ownership in US clearing."

Mehta also said that RDC's product will provide a supplement to Bitcoin ETFs, and compared to Bitcoin ETFs that redeem cash, depositary receipts offer qualified institutions direct ownership of Bitcoin.