A group of former Citigroup executives has unveiled a groundbreaking product known as bitcoin depository receipts. This innovative crypto offering does not require registration with the U.S. Securities and Exchange Commission (SEC). It aims to complement the forthcoming approval of spot bitcoin exchange-traded funds (ETFs) by the securities regulator.
Introducing Receipts Depositary Corporation (RDC)
Receipts Depositary Corporation (RDC), a startup founded by a team of former Citigroup executives, has introduced the world's first bitcoin depositary receipt (BTC DR). RDC explains that bitcoin depositary receipts operate within the U.S.-regulated market infrastructure and are cleared through the Depository Trust Company (DTC). They function similarly to American Depositary Receipts (ADRs) for foreign stocks.
RDC plans to issue the first BTC DRs to qualified institutional buyers (QIBs) in the coming weeks. These transactions will be exempt from registration under the Securities Act of 1933. Notable institutions, including Franklin Templeton, BTIG, and Broadhaven Ventures, support RDC. In addition, Broadridge Corporate Issuer Solutions will serve as the transfer agent, while Anchorage Digital Bank National Association will handle bitcoin custody.
Anchorage Digital Bank National Association independently announced its partnership with Receipts Depository Corporation, expressing excitement about supporting the launch of the first-ever bitcoin depositary receipt.
The Role of RDC in the Market
Ankit Mehta, co-founder and CEO of RDC, previously an executive at Citigroup, highlighted the complementary nature of RDC's offering in comparison to spot bitcoin ETFs. With the SEC expected to approve ETFs in the near future, Mehta described RDC as a conversion tool for asset owners, such as hedge funds, family offices, corporations, and large institutional investors. They can utilize RDC to convert their bitcoin holdings into DTC-eligible securities, enabling direct ownership within the U.S. clearing system.
What are your thoughts on this groundbreaking product? Share your opinions in the comments below.
Frequently Asked Questions
Should you Invest In Gold For Retirement?
It depends on how much you have saved and if gold was available at the time you started saving. You can invest in both options if you aren't sure which option is best for you.
You can earn potential returns on your investment of gold. This makes it a worthwhile choice for retirees.
While many investments promise fixed returns, gold is subject to fluctuations. This causes its value to fluctuate over time.
This does not mean you shouldn’t invest in gold. Instead, it just means you should factor the fluctuations into your overall portfolio.
Another benefit of gold is that it's a tangible asset. Gold is much easier to store than bonds and stocks. It is also easily portable.
As long as you keep your gold in a secure location, you can always access it. Plus, there are no storage fees associated with holding physical gold.
Investing in gold can help protect against inflation. You can hedge against rising costs by investing in gold, which tends to rise alongside other commodities.
It's also a good idea to have a portion your savings invested in something which isn't losing value. Gold usually rises when the stock market falls.
Investing in gold has another advantage: you can sell it anytime you want. You can easily liquidate your investment, just as with stocks. You don't have to wait for retirement.
If you do decide to invest in gold, make sure to diversify your holdings. Don't put all your eggs on one basket.
You shouldn't buy too little at once. Begin by buying a few grams. Then add more as needed.
Remember, the goal here isn't to get rich quickly. It's not to get rich quickly, but to accumulate enough wealth to no longer need Social Security benefits.
Gold may not be the most attractive investment, but it could be a great complement to any retirement strategy.
How does a gold IRA work?
Physical gold bullion coin can be purchased at any time. You don't have a retirement date to invest in gold.
You can keep gold in an IRA forever. You won't have to pay taxes on your gold investments when you die.
Your heirs will inherit your gold, and not pay capital gains taxes. You don't need to include your gold in your final estate report, as it isn't part of the estate.
First, an individual retirement account will be set up to allow you to open a golden IRA. Once you've completed this step, an IRA administrator will be appointed to your account. This company acts as an intermediary between you and IRS.
Your gold IRA custodian will handle the paperwork and submit the necessary forms to the IRS. This includes filing annual returns.
You'll have to pay taxes if you take your gold out of your IRA. If you are withdrawing your entire balance, you will owe income tax plus a 10% penalty.
A small percentage may mean that you don't have to pay taxes. There are some exceptions, though. However, there are exceptions. If you take 30% or more of your total IRA asset, you'll owe federal Income Taxes plus a 20% penalty.
It is best to not take out more than 50% annually of your total IRA assets. You'll be facing severe financial consequences if you do.
What are the advantages of a IRA with a gold component?
There are many advantages to a gold IRA. It is an investment vehicle that can diversify your portfolio. You have control over how much money goes into each account.
You have the option of rolling over funds from other retirement account into a gold IRA. This is a great way to make a smooth transition if you want to retire earlier.
The best part about gold IRAs? You don't have to be an expert. They're available at most banks and brokerage firms. Withdrawals can happen automatically, without any fees or penalties.
There are, however, some drawbacks. Gold is known for being volatile in the past. It is important to understand why you are investing in gold. Are you seeking safety or growth? Are you looking for growth or insurance? Only when you are clear about the facts will you be able take an informed decision.
If you plan on keeping your gold IRA alive for a while, you may want to consider purchasing more than 1 ounce of pure gold. One ounce doesn't suffice to cover all your needs. Depending on the purpose of your gold, you might need more than one ounce.
You don't have to buy a lot of gold if your goal is to sell it. You can even get by with less than one ounce. But, those funds will not allow you to buy anything.
Can the government take your gold?
Your gold is yours, so the government cannot confiscate it. It's yours, and you earned it by working hard. It is yours. However, there may be some exceptions to this rule. If you are convicted of fraud against the federal government, your gold can be forfeit. You can also lose precious metals if you owe taxes. However, even though your taxes have not been paid, you can still keep your precious metals, even though they are considered the property of United States Government.
What are the advantages of a gold IRA
You can save money on retirement by putting your money into an Individual Retirement Account. It's tax-deferred until you withdraw it. You can decide how much money you withdraw each year. There are many types available. Some are better for those who want to save money for college. Others are made for investors seeking higher returns. Roth IRAs let individuals contribute after age 591/2 and pay tax on any earnings at retirement. The earnings earned after they withdraw the funds aren't subject to any tax. So if you're planning to retire early, this type of account may make sense.
An IRA with a gold status is like any other IRA because you can put money into different asset classes. Unlike a regular IRA which requires taxes to be paid on gains as you wait to withdraw them, a IRA with gold allows you to invest in multiple asset classes. For people who would rather invest than spend their money, gold IRA accounts are a good option.
You can also enjoy automatic withdrawals, which is another benefit of owning your gold through an IRA. This means that you don't need to worry about making monthly deposits. Direct debits could be set up to ensure you don't miss a single payment.
Finally, the gold investment is among the most reliable. Because it isn’t tied to any specific country, gold’s value tends to stay stable. Even during economic turmoil the gold price tends to remain fairly stable. Gold is a good option for protecting your savings from inflation.
- If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal, so you would owe income tax on the item's value and, if you are younger than 59 ½, an additional 10% early withdrawal penalty. (forbes.com)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- Indeed, several financial advisers interviewed for this article suggest you invest 5 to 15 percent of your portfolio in gold, just in case. (aarp.org)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- (Basically, if your GDP grows by 2%, you need miners to dig 2% more gold out of the ground every year to keep prices steady.) (smartasset.com)
- Saddam Hussein’s InvasionHelped Uncage a Bear In 1989 – WSJ
- Do you want to keep your IRA gold at home? It's not exactly legal – WSJ
- Gold IRA: Add Some Sparkle To Your Retirement Nest Egg
- Understanding China's Evergrande Crisis – Forbes Advisor
Investing In Gold vs. Investing In Stocks
These days, it might seem quite risky to invest your money in gold. The reason behind this is that many people believe that gold is no longer profitable to invest in. This belief is due to the fact that many people see gold prices dropping because of the global economy. They believe they would lose their money if they invested gold. There are many benefits to investing in gold. Let's take a look at some of the benefits.
One of the oldest forms known of currency is gold. Its use can be traced back to thousands of years ago. It was used by many people around the globe as a currency store. As a means of payment, South Africa and many other countries still rely on it.
You must first decide how much you are willing and able to pay per gram to decide whether or not gold should be your investment. If you're interested in buying gold bullion, it is crucial that you decide how much per gram. If you don't know your current market rate, you could always contact a local jeweler and ask them what they think the price is.
It's worth noting, however, that while gold prices have fallen recently the cost of producing gold is on the rise. Although the price of gold has dropped, production costs have not.
It is important to keep in mind the amount you plan to purchase of gold when you're weighing whether or not it is worth your time. If you intend to only purchase enough gold to cover your wedding rings it may be a smart decision to not buy any gold. If you plan to do so as long-term investments, it is worth looking into. Profitable gold can be sold at a lower price than it was when you bought it.
We hope you have gained a better understanding about gold as an investment tool. It is important to research all options before you make any decision. Only then will you be able to make an informed decision.
By: Kevin Helms
Title: New Bitcoin Depository Receipts Launched by Former Citigroup Executives
Sourced From: news.bitcoin.com/former-citi-executives-launch-new-bitcoin-product-that-bypasses-sec-approval/
Published Date: Sun, 07 Jan 2024 04:30:45 +0000