Former Citigroup employees planning to offer BTC securities without SEC oversight.

Bitcoin-backed securities will soon be offered by former executives of Citigroup Inc., according to a report by Bloomberg. These securities, known as Bitcoin Depositary Receipts (BTC DR), will function similarly to American Depositary Receipts for foreign stocks. The unique aspect of BTC DR is that it will offer direct ownership of Bitcoin to qualified institutions, making it the first of its kind to do so. The issuance of BTC DR aims to provide an alternative investment option for regulated institutions that may be hesitant to directly purchase Bitcoin due to challenges such as security risks and regulatory uncertainty. The RDC proposal, which does not require approval from the US Securities and Exchange Commission (SEC), is expected to complement the Bitcoin ETF market. This move by the former Citigroup executives presents an opportunity for institutional investors to enter the crypto markets amidst ongoing regulatory debates surrounding the spot Bitcoin ETF.