- RDC, founded by former Citigroup executives, proposes bitcoin securities without SEC approval, innovating in crypto-investments.
- The startup offers bitcoin depositary receipts for institutional investments, avoiding the regulatory requirements of traditional ETFs.
The well-known startup, created by former Citigroup executives, is challenging the traditional cryptocurrency investment landscape. Receipts Depositary Corp (RDC), its name, plans to offer bitcoin-backed securities that they say do not need approval from the U.S. Securities and Exchange Commission (SEC). The move could open a new avenue for institutional investments in bitcoin.
What is RDC proposing?
RDC is proposing an interesting solution: offering depositary receipts, similar to American Depositary Receipts (ADRs) that represent foreign stocks on U.S. exchanges. The “BTC DRs” will be available to institutions and will be settled through the Depository Trust Company (DTC).
Innovation in Bitcoin Access
What makes this proposal special is that RDC’s bitcoin depositary receipts will be offered in transactions exempt from registration under the Securities Act of 1933. Inother words, RDC has found a way to offer bitcoin investments that could circumvent the usual regulatory requirements.
The Founders’ Vision
Ankit Mehta, co-founder and CEO of RDC, describes the startup as
“A conversion tool for asset owners, who want to convert their bitcoin into a DTC-eligible security and enjoy direct ownership in U.S. settlement systems.”
This vision addresses the institutional desire for bitcoin investments that may not be satisfied by a spot exchange-traded fund (ETF).
A Different Approach to Bitcoin ETFs
Unlike bitcoin ETFs, whose shares are redeemed for cash, depositary receipts would offer direct ownership of bitcoin. This could be a major attraction for certain institutional investors seeking a more “pure” exposure to bitcoin.
What does this mean for the Future of Bitcoin Investments?
RDC’s initiative could mark a before and after in the way institutions invest in bitcoin. By offering an alternative to spot ETFs, which are still pending SEC approval, RDC paves a path that could be followed by other startups and companies in the sector.
New Opportunities
This new approach by RDC to bitcoin investments is not only innovative, but also broadens the horizon of opportunities for institutional investors. With this approach, RDC is paving the way for greater acceptance and adoption of cryptocurrencies in more traditional financial circles.
The step taken by RDC, by offering a new way to invest in bitcoin, is a clear indication that the world of cryptocurrencies is constantly evolving. With this proposal, the startup not only challenges the status quo, but also opens a new chapter in the history of crypto investments. As the financial world watches, this initiative could be the beginning of a new era in institutional cryptoasset investing.
