Citigroup to issue receipts for crypto trading

By George Geddes on Monday 10 September 2018

Savings and Investment

The US bank has designed a new mechanism called digital asset receipts for investing in cryptocurrencies.

Citigroup will issue digital asset receipts (DAR) allowing investors to trade in cryptocurrency without owning the underlying coins, according Business Insider, quoting a person with knowledge of the plan.

The new investment tool is similar to an American Depositary Receipt (ADR) which enables US investors to own a foreign stock that isn’t traded on the US market. A custodian bank will purchase and hold the cryptocurrency for which Citigroup will issue the corresponding receipt.

A spokesperson for the bank has declined to comment on the plans.

Being one of the leading issuers of ADRs, Citigroup is looking to make it easier and safer for Wall Street investors to include cryptos such as Bitcoin in their portfolios, given that the structure is approved by the US financial regulators.

It is unclear how the regulatory bodies are going to percieve this plan having already recently turned down several other proposals for crypto-themed exchange traded funds.

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