Citigroup Reveals New Non-Custodial Bitcoin Item
Citigroup has created a new tool for institutional investors which lets them interact with Bitcoin without having to own any, according to reports made on September 10.
Business Insider disclosed that the US giant was looking to leverage a version of the American Depository Receipt (ADR)- a traditional finance tool- for Bitcoin, thus resulting in the creation of the Digital Asset Receipt (DAR).
“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,” explains the statement.
Citigroup was less outspoken when it came to cryptocurrency than many of its Wall Street colleagues, with many banking institutions being fixated on blockchain developments.
Being one of the biggest issuers of ADRs, which has been I the business since the 1920s, the bank’s new Bitcoin $6332.54 -0.04% trading tool could be the “most direct way” to offer investors exposure without having to own bitcoin, the sources stated.
These rumors come at a time when Bitcoin exchange-traded funds (ETFs) are still a widely debated subject by regulators and financial experts, as on Sunday the Securities and Exchange Commission (SEC) temporarily suspended two crypto-related exchange-traded notes (ETNs).
The entire segment of non-custodial institutional crypto trading has not received a warm welcome from most of the important financial institutions this year.
Regarding the possible introduction of an ETF and Intercontinental Exchange’s Bakkt regulated exchange, Andreas Antonopoulos countered that indirect exposure would eventually lead to a damaging effect on bitcoin’s reputation.
“An ETF is a multibillion-dollar ‘not-your-keys-not-your-Bitcoin’ vehicle, so that’s why I’m against it and I wouldn’t buy any,” he stated a month ago.
“But it is going to happen anyway.”