The world of cryptocurrencies witnessed a torrent of speculative buzz today as a cadre of ex-Citigroup Inc. executives recently unveiled plans to launch Bitcoin-backed securities, unchained to the US SEC’s constraints. The announcement, facilitating the launch, soon caught the eyes of crypto market enthusiasts globally as it surfaced in the market amid the fervent anticipation of a Bitcoin Spot ETF.
Notably, the new securities, Bitcoin depository receipts, are peculiarly similar to the American depositary receipts representing foreign stocks. Furthermore, the startup Receipts Depositary Corporation (RDC) seems to be setting its sights on unveiling the initial Bitcoin depositary receipts for qualified global institutional investors, unburdening itself from registrations under the Securities Act of 1933.
A Closer Look Into The Report
According to the statement released, the BTC DRs aim to give institutions access to Bitcoin securities via US-regulated market infrastructure, followed by the Depository Trust Co. sanctioning. Moreover, as per Ankita Mehta, co-founder of RDC and former Citigroup exec, the primary role now is to serve as a conversion tool for various asset owners, whether hedge funds, family offices, or large institutional investors. Thereafter, transform their Bitcoin holdings into DTC-eligible securities, enabling the attainment of direct ownership in US clearances.
Meanwhile, Broadridge Corporate Solutions is all set to act as the transfer agent, further accompanied by Anchorage Digital Bank National Association, acting as the managerial custody for the underlying BTC in RDC’s offering.
Intriguingly, RDC received its jack-up from investors like Franklin Templeton, BTIG, and Broadhaven Ventures and now plans to offer a complimentary product to Bitcoin ETFs. Furthermore, amid rising concerns over the approval of spot Bitcoin ETF, RDC’s approval offers certified institutions with direct Bitcoin ownership, differentiating itself from ETFs redeemed for cash.
Also Read: Over 200K Bitcoins Worth $9 Bln On Move Causes Panic, What’s Happening?
Bitcoin Price Tumbles
As of writing, the Bitcoin price tumbled 5.23% over the past 24 hours and is currently trading at $42,955.06. Moreover, this drop was further escorted by a weekly fall of 0.51%.
Notably, even the market cap down surged 5.20%, reaching $841,50 billion. However, the 24-hour trading volume remarked a colossal 59.78% upswing, fueling further inferences for the token.
Also Read: Hivemapper (HONEY) Price Jumps 100% Instantly After Coinbase Listing
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
In a recent CNBC Squawk Box interview, David Marcus, the former president of PayPal and current CEO of Lightspark has shared his ambitious vision for Bitcoin (BTC).
The Quest for Universal Payment Protocol
David Marcus began his interview by highlighting a fundamental challenge in the digital era, which is the absence of a universal protocol for online money transfers. Unlike the traditional financial system, which relies on established protocols for currency exchange and international payments, the Internet lacks a standardized method for transferring money across borders.
Marcus asserted that Bitcoin, with its decentralized nature and growing global acceptance, holds the potential to fill this void and become the universal protocol for online money. He believes that Bitcoin’s unique properties, including its security and ability to function outside the control of any central authority, make it an ideal candidate for this role.
When asked whether the price of Bitcoin would rise if it became a widely used currency, Marcus offered a different perspective, stating that “Bitcoin is not the currency people will use to buy things.”
Bitcoin and the Lightning Network
However, he highlighted that a fragment of BTC on top of Lightning is like a small packet of data on the internet only for a value that can be exchanged on the network for cross-border transfer payments at a very low cost.
What distinguishes Marcus’ viewpoint is his appreciation of Bitcoin’s potential in conjunction with the Lightning Network. The Lightning Network is a layer-2 scaling solution that addresses Bitcoin’s scalability difficulties by enabling faster and cheaper transactions.
By leveraging the Lightning Network, users can send Bitcoin with significantly lower transaction fees compared to on-chain transactions. The Lightning Network also makes microtransactions more practical, opening up new possibilities for use cases such as online content monetization and pay-per-use services.
As the crypto ecosystem continues to evolve, Bitcoin’s adaptability and utility in various applications is becoming increasingly apparent. Whether as a store of value or a tool for cross-border transfers, Bitcoin’s impact on the financial landscape is undeniable, and its journey is one that continues to captivate the interest of investors and enthusiasts around the world.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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