- Today, a group of former Citigroup Inc. executives revealed their plans to launch Bitcoin
-backed securities independently of SEC restrictions.
- Interestingly, the initiative has received support from investors such as RDC, Franklin Templeton, BTIG, and Broadhaven Ventures.
- As of the time of writing, the price of Bitcoin has experienced a 5% decline in the last 24 hours and is currently trading at $43,200.
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A group of former Citi executives has announced plans for Bitcoin-backed securities: What does this exactly mean?
Former Citi Executives Unveil Bitcoin Plans
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Today, the world of cryptocurrencies witnessed speculative buzz as a group of former Citigroup Inc. executives announced their plans to launch Bitcoin-backed securities independently of SEC restrictions. This announcement caught the attention of global crypto enthusiasts at a time when the market is eagerly anticipating the approval of a Bitcoin Spot ETF.
Notably, the new securities, known as Bitcoin Depositary Receipts, bear a striking resemblance to American Depositary Receipts representing foreign stocks. Additionally, a newly-formed company named Receipts Depositary Corporation (RDC) seems to be gearing up to launch the first Bitcoin Depositary Receipts for qualified global institutional investors without registering under the 1933 Securities Act.
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According to the released statement, BTC DRs aim to provide institutions access to Bitcoin securities through regulated US market infrastructure and approval by the Depository Trust Co. Additionally, Ankita Mehta, one of the founders of RDC and a former Citigroup executive, stated that the primary role at the moment is to serve as a transformation tool for various asset holders, whether they be hedge funds, family offices, or large institutional investors, to convert their Bitcoin assets into securities compliant with the DTC and gain direct ownership in US exchanges.
Meanwhile, Broadridge Corporate Solutions is ready to act as a transfer agent, collaborating with Anchorage Digital Bank National Association, which acts as the custodian for BTC, a key part of RDC’s offering.
Interestingly, RDC has secured support from investors like Franklin Templeton, BTIG, and Broadhaven Ventures and is now planning to offer a complimentary product to Bitcoin ETFs. Furthermore, amid growing concerns about the approval of the spot Bitcoin ETF, RDC distinguishes itself by providing direct Bitcoin ownership to certified entities and differentiates from ETFs that are redeemed for cash.
Bitcoin Price Declines
At the time of writing, the price of Bitcoin has experienced a 5% decline in the last 24 hours and is currently trading at $43,200. This decline follows a weekly decrease of 0.51%. Notably, the market cap has increased by 5.20% to $841.50 billion. However, the 24-hour trading volume has seen a substantial increase of 59.78%, providing additional momentum for further price movements.