A group of former Citigroup executives plans to offer bitcoin-backed securities they say don't need to be approved by the U.S. Securities and Exchange Commission (SEC).

Receipts Depositary Corp. (RDC) will offer depositary receipts similar to the American depositary receipts (ADRs) that represent foreign stocks on U.S. equity exchanges. The "BTC DRs" will be offered to institutions and cleared through the Depository Trust Company (DTC), according to a press release on Thursday.

RDC will offer bitcoin depositary receipts to investors in transactions exempt from registration under the Securities Act of 1933. The offering will start in the coming weeks, according to the statement.

"There are many benefits to using depositary receipts, such as their tried and true structure, providing direct ownership of the underlying asset and easy inclusion in institutional products," Ankit Mehta, co-founder and CEO of RDC, said in the release.

RDC aims to address the institutional desire for bitcoin investments that may not be satisfied by a spot exchange-traded fund (ETF). The SEC is expected to approve the listing of a spot BTC ETF in the U.S. in the very near future.

Whereas shares in bitcoin ETFs would be redeemed for cash, depositary receipts would offer direct ownership of bitcoin, Mehta told Bloomberg, which reported the news earlier. Anchorage Digital Bank National Association will provide custody of the underlying bitcoin.

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UPDATE (Jan. 04, 14:48 UTC): Removes Bloomberg attribution; adds company release, CEO quote and custodian detail.