“Bitcoin Custody Receipt” is a new opportunity for traditional investors to access Bitcoin

“Bitcoin Custody Receipt” is a new opportunity for traditional investors to access Bitcoin The trend of developing ETF investment funds with the underlying asset being spot Bitcoin is attracting the attention of investors. Besides, providing investment tools backed by cryptocurrencies also opens up many new opportunities. Recently, a group of former senior leaders of Citigroup implemented a new solution called Bitcoin custodial receipts.
The solution aims to provide access to Bitcoin-backed securities to institutional investors worldwide. Bitcoin Depository Receipts, or BTC DR, will provide direct ownership of Bitcoin to qualified institutions through a US-regulated market infrastructure and be settled through Depository Trust Co. This is considered a “complementary” product to the Bitcoin ETF, and is expected to open up opportunities for organizations that need direct exposure to Bitcoin while still ensuring safety and regulatory compliance. Ankit Mehta, co-founder and chief executive officer of Receipts Depositary Corporation (RDC), said that RDC's offering will not require approval from US regulators, opening up a flexible option and convenient for institutional investors.
Backed by reputable investors such as Franklin Templeton, BTIG and Broadhaven Ventures, RDC is expected to issue the first Bitcoin depository receipts to qualified global institutional investors in exempt transactions Registered under the Securities Act of 1933. During the implementation, RDC will partner with Broadridge Enterprise and the Anchorage Digital Banking National Association to ensure the underlying Bitcoin transfer and custody process is carried out securely and efficiently.
This solution is expected to help alleviate challenges related to security risks and regulatory uncertainty that the cryptocurrency market is facing. Additionally, the adoption of Bitcoin depository receipts is also expected to eliminate the need for a centralized clearinghouse, thanks to the use of a decentralized blockchain or public ledger for verification, records and settles transactions between users. This can create a safer and more transparent trading environment for institutional investors. However, implementing Bitcoin custodial receipts also poses market infrastructure challenges and requires cooperation from multiple stakeholders. Group of former executives of Citigroup Inc.
and its partners are focused on building a comprehensive and secure solution to meet the growing demand for Bitcoin exposure from institutional investors. With spot Bitcoin ETFs likely to be approved, the launch of Bitcoin depository receipts could open up new avenues and bring major benefits to the cryptocurrency market. This shows the progress and flexibility in applying cryptocurrency technology to the traditional financial system, creating new opportunities for investors and consumers. Bitcoin depository receipts can provide a new, more secure and transparent way to invest in cryptocurrencies, while supporting liquidity and facilitating risk management. In fact, implementing Bitcoin depository receipts could be an important step in expanding the reach and usage of cryptocurrencies in global financial markets, while also helping to increase transparency and Safety in financial transactions. Collaboration between traditional financial institutions and cryptocurrency technology can yield positive results and benefit the entire investment and consumer community.