Former Citigroup executives plan to offer Bitcoin-backed securities. They say do not need to be approved the U.S. Securities and Exchange Commission.

Receipts Depository Corp. will offer depositary receptions similar to American Depositary Recipients that represent foreign shares on U.S. stock exchanges. According to a Thursday press release, the “BTC-DRs” will only be available to institutions. They are then cleared by Depository Trust Company.

RDC will offer bitcoin Depositary Receipts to investors for transactions that are exempt from registration pursuant to the Securities Act of 1933. According to the statement, the offering will begin in the next few weeks.

Ankit Mehta said that depositary receipts have many advantages, including their proven structure, direct ownership of underlying assets, and ease of inclusion in institutional products.

RDC is a new exchange-traded funds (ETF) that aims to meet the needs of institutional investors who may not find a spot ETF satisfying. The SEC will likely approve the listing of an exchange-traded fund (ETF) for spot BTC in the U.S. very soon.

Mehta, who reported this news earlier, said that while shares in bitcoin ETFs could be converted into cash, depositary certificates would allow direct ownership of bitcoin. Anchorage Digital Bank National Association is responsible for the custody of bitcoin.

Read more: Bitcoin ETFs could spark huge BTC trading. The market appears to be up to the task

UPDATE: (Jan. 4, 14:48 UTC). Removes the Bloomberg attribution. Adds company release and CEO quote.

Sheldon Reback is the editor.