Citigroup will let investors to gain exposure to cryptos without owning any
Apparently, US multinational bank Citigroup plans to develop the most direct way for entrepreneurs to invest into digital assets by a very interesting and at the same time classic way.
Citigroup finds the way to go with crypto
As the Business Insider reported September 9th, the anonymous sources announced that the financial services giant is working on a crypto product giving institutional investors to cryptomarkets without owning any crypto asset.
The reported instrument is a version of a traditional finance tool the American Depository Receipt, but with the only difference, as it can be applied to cryptocurrencies. According to the source, the project will be called Digital Asset Receipt (DAR) and will function by giving US investors a possibility to own foreign stocks than don’t trade on american exchanges. The Business Insider quoted the informer:
“The foreign stock is held by a bank, which then issues the depository receipt. In this case, the cryptocurrency is held by a custodian and the DAR is issued by Citigroup.”
The source didn’t give much information, not clarifying neither any timeframes nor other details. Nevertheless, the news are intriguing and we will definitely follow the developments.