Receipts Depositary Corporation (RDC), with backing from investment giant Franklin Templeton, is set to launch groundbreaking Bitcoin-based security products. These unique products, known as Bitcoin Depositary Receipts (BTC DRs), are designed to offer qualified institutional buyers a regulated method of investing in Bitcoin without the usual registration requirements with the U.S. Securities and Exchange Commission (SEC).
Unlike traditional securities, these BTC DRs are exempt from SEC registration under the U.S. Securities Act of 1933, specifically tailored for financially sophisticated entities like banks and investment firms. Mimicking the structure of American Depositary Receipts, which facilitate U.S. investors in buying foreign stocks, BTC DRs offer similar ease and access for Bitcoin investments.
RDC, also supported by BTIG and Broadhaven Ventures, aims to issue these innovative products within weeks. Partnering with Broadridge Corporate Issuer Solutions as the SEC-registered transfer agent and Anchorage Digital for custody, the BTC DRs promise robust security and regulatory compliance. These receipts will be fully backed by Bitcoin held in custody, ensuring no lending, re-hypothecation, or pledging of the underlying assets.
RDC’s BTC DRs are not only a novel offering but also represent a significant stride in integrating Bitcoin into the securities ecosystem. This initiative could pave the way for more mainstream adoption of digital assets in traditional investment portfolios.
Disclaimer: Please note that the information provided in this article is based on the referenced research articles. It is essential to conduct further research and analysis before making any investment decisions. The cryptocurrency market is highly volatile, and investors should exercise caution and consult with financial professionals before engaging in cryptocurrency trading or investment activities.
