U.S .. The multinational Citigroup is developing a cryptocurrency product to offer institutional investors access to crypto-markets without owning cryptography directly, anonymous sources told Business Insider on 9 September.
Citigroup, which had previously adopted a centralized cryptocurrency approach, will use a revised version of American Depositary Receipts (ADR) – a type of security issued since the 1920s which represents the securities of a non- US – to allow investors to indirectly exchange crypts.
The final product will be known as Digital Asset Receipt (DAR
According to "people with knowledge of the plans", a DAR "works very much like" an ADR, either "that offers US investors a way to hold foreign shares that otherwise do not trade with the United States trade. "
" Foreign capital is held by a bank, which issues the deposit receipt, in which case the cryptocurrency is held by a custodian and the DAR is issued by Citigroup, "Business Insider explains, paraphrasing the sources.
While no period was mentioned for a possible launch and Citigroup declined to comment, the news reaches a relevant period for the cryptocurrency markets.
reported by Cointelegraph, on September 9th saw the US regulator Securities and Exchange Commission (SEC) issue a temporary ban on surprise on the first traded notes of exchange encrypted (ETN), citing "confus ion "among investors.
At the same time, the fate of multiple Bitcoin and Ethereum (ETF) publicly traded funds remains a hot topic of conversation; the SEC has turned down a series of Bitcoin ETF applications in August.