Former Citigroup Executives to Offer Bitcoin Deposit Receipts, Bypassing SEC Approval Process

Ex Citigroup Executives Forge New Path with Bitcoin-Backed Securities Amid SEC Hurdles
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A group of former Citigroup executives have announced plans to launch a groundbreaking initiative that could revolutionize the way institutions access Bitcoin investments.

This new company, called Receipts Depositary Corp. (RDC), aims to offer what is known as Bitcoin Depositary Receipts (BTC DR), which resemble American Depositary Receipts (ADR) used to represent foreign stocks in US markets.

The main attraction of this proposal is that these BTC DRs will offer institutions direct access to Bitcoin through the US regulated market infrastructure, without requiring approval from the US Securities and Exchange Commission (SEC).

Settlement of these securities will be conducted through the Depository Trust Company (DTC), allowing transactions exempt from registration under the Securities Act of 1933.

Ankit Mehta, co-founder and CEO of RDC, describes this initiative as a “conversion tool” intended for asset owners who want to convert their holdings into DTC-eligible securities, thereby ensuring direct ownership in the US.

This approach seeks to address institutional demand for exposure to Bitcoin, providing a different alternative to the proposal for a spot Bitcoin Exchange Traded Fund (ETF).

Former Citigroup Executives to Offer Bitcoin Deposit Receipts, Bypassing SEC Approval Process

The key difference between BTC DR and a Bitcoin ETF lies in the ownership offered to investors

While shares of a Bitcoin ETF would be redeemed for cash, these depository receipts offer institutions direct ownership of BTC, representing a significant change in investment dynamics.

This move comes at a time when the SEC is debating approval of a spot ETF, which could lead to regulatory uncertainty and risk aversion in traditional financial markets.

RDC’s proposal offers an alternative for institutions looking to enter the cryptocurrency market without the challenges associated with directly purchasing Bitcoin, such as security risks and regulatory uncertainty.

Regulatory uncertainty persists in the cryptocurrency space, as the SEC continues to delay its decisions on important applications, such as approving a Bitcoin Exchange Traded Fund (ETF).

This delay in providing clear regulatory guidance creates an environment of uncertainty for market participants, especially at a time when institutional demand for cryptocurrency investments is on the rise.

Prolonged delays in decision-making by the SEC can hinder innovation and limit opportunities for companies seeking to offer viable and safe alternatives to investing in digital assets, leaving institutional investors in a state of prolonged waiting and without clarity on the regulatory direction to follow.


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