The American financial conglomerate Citigroup is developing, perhaps, the most direct way to invest in crypto currency without having to own them, informed Business Insider familiar with the situation sources.
The instrument is called a receipt for a digital asset (DAR). In many respects, the principles of its operation resemble the American Depository Receipt (ADR), which has existed for several decades and allows investors in the US to invest their money in foreign shares that are not traded on their home exchanges. In this case, the bank keeps the share in its possession, giving the depositary receipt to the investor.
According to him, the project is a common initiative of the bank’s teams to create products in the capital markets and depository receipts services. At what stage are DAR Citigroup and when they will be launched, it is not known, but sources say that the bank is already negotiating with potential partners.
Citigroup is one of the largest ADR issuers in the world. The bank began issuing depository receipts in 1928 and received several awards for their offer, according to his website.
Unlike some other large companies on Wall Street, Citigroup refrained from allowing its clients to enter the crypto-currency market. Among other things, he did not immediately engage in clearing futures for bitcoin and banned the use of his credit cards for the purchase of crypto currency.
Simultaneously, the bank expanded its staff in this area. According to this year’s vacancies on LinkedIn, he was looking for a vice president and senior vice president of risk money laundering using Bitcoin and other new payment technologies.