Citi Alumni Unveil Bitcoin DRs With SEC Approval-Free Rollout

The world of cryptocurrencies witnessed a torrent of speculative buzz today as a cadre of ex-Citigroup Inc. executives recently unveiled plans to launch Bitcoin-backed securities, unchained to the US SEC’s constraints. The announcement, facilitating the launch, soon caught the eyes of crypto market enthusiasts globally as it surfaced in the market amid the fervent anticipation of a Bitcoin Spot ETF.

Notably, the new securities, Bitcoin depository receipts, are peculiarly similar to the American depositary receipts representing foreign stocks. Furthermore, the startup Receipts Depositary Corporation (RDC) seems to be setting its sights on unveiling the initial Bitcoin depositary receipts for qualified global institutional investors, unburdening itself from registrations under the Securities Act of 1933.

A Closer Look Into The Report

According to the statement released, the BTC DRs aim to give institutions access to Bitcoin securities via US-regulated market infrastructure, followed by the Depository Trust Co. sanctioning. Moreover, as per Ankita Mehta, co-founder of RDC and former Citigroup exec, the primary role now is to serve as a conversion tool for various asset owners, whether hedge funds, family offices, or large institutional investors. Thereafter, transform their Bitcoin holdings into DTC-eligible securities, enabling the attainment of direct ownership in US clearances.

Meanwhile, Broadridge Corporate Solutions is all set to act as the transfer agent, further accompanied by Anchorage Digital Bank National Association, acting as the managerial custody for the underlying BTC in RDC’s offering.

Intriguingly, RDC received its jack-up from investors like Franklin Templeton, BTIG, and Broadhaven Ventures and now plans to offer a complimentary product to Bitcoin ETFs. Furthermore, amid rising concerns over the approval of spot Bitcoin ETF, RDC’s approval offers certified institutions with direct Bitcoin ownership, differentiating itself from ETFs redeemed for cash.

Also Read: Over 200K Bitcoins Worth $9 Bln On Move Causes Panic, What’s Happening?

Bitcoin Price Tumbles

As of writing, the Bitcoin price tumbled 5.23% over the past 24 hours and is currently trading at $42,955.06. Moreover, this drop was further escorted by a weekly fall of 0.51%.

Notably, even the market cap down surged 5.20%, reaching $841,50 billion. However, the 24-hour trading volume remarked a colossal 59.78% upswing, fueling further inferences for the token.

Also Read: Hivemapper (HONEY) Price Jumps 100% Instantly After Coinbase Listing