[Former Citi members can issue BTC securities without SEC approval]
According to a report by Bloomberg, a former senior executive of Citigroup plans to launch a new type of securities based on Bitcoin that does not require approval from U.S. regulatory agencies. The securities will be issued by a new company, the Depository Depository Corporation (RDC), and will be similar in nature to U.S. depositary certificates representing foreign stocks.
These Bitcoin deposit certificates will be provided to institutional investors through the U.S. regulated market infrastructure and cleared through the Certificate Depository Trust Company. Unlike Bitcoin exchange-traded funds (ETFs), CDs will provide direct ownership of Bitcoin, which will be an industry first.
RDC believes that some regulated institutions are cautious about purchasing Bitcoin due to security risks and regulatory uncertainty in the crypto market. The plan proposed by the company aims to "complement" the Bitcoin ETF and provide new opportunities for institutional investors to introduce funds into the cryptocurrency market.
Ankit Mehta, co-founder and CEO of RDC, said their goal is to help asset owners of all kinds convert their Bitcoin into securities that qualify as CDTs. The new product may be popular with investors amid the Bitcoin investment boom, especially as it provides another investment open to institutional investors amid the U.S. Securities and Exchange Commission's (SEC) review of spot Bitcoin ETFs. way.
