Citigroup's New Digital Asset Receipt (DAR) as a Bitcoin Security Product Looks to Crack Crypto Code for Investors

Citigroup Insider Shares Citi is Working on a Bitcoin ‘Security’ Product, Aims to Be the Leading Company

Citigroup is working in order to launch a new Bitcoin trading product to the market. The main intention is to be ahead of its Tier I banking rivals around the world. The information has been released by some sources inside Citigroup. Apparently, they say that the company is getting legally ‘creative’ in order to offer customers a tradeable, physical Bitcoin asset.

As per the sources, the product that they are going to develop is known as a ‘digital’ American Depository Receipt (ADR), which functions as a foreign security product.

Citigroup is taking the concept of an ADR and moving it to the digital world that is linked to physical Bitcoin.

The source explained on the matter:

“We expect it would be a security structured so that custody, settlement, etc would fit into existing systems and regimes versus an NDF which is an OTC derivative. Many investors are often more restricted in their use of derivatives versus purchasing securities.”

Non-deliverable forward (NDF) are futures contract in which counterparties settle the difference between the contracted NDF price or rate and the prevailing prevailing spot price.

Citigroup wants to create a securitized product and launch it to the market. The main intention is to allow customers to trade it using the ADR designation. According to some experts, this creative solution seems very interesting to enter the crypto market.

According to a crypto hedge fund source, institutions have one main problem: clients know about the cryptocurrency market and want to be part of it. Citigroup is trying to create an innovative concept that could be well received in the market. As the new product uses already accepted infrastructure is very important for regulatory agencies at the time of controlling the space.

Another source close to the bank informed that Citi has a very interesting plan that would make Citigroup the first to trade physical Bitcoin.

“Citi is circulating a plan that will make it the first bank to (nearly) trade physical Bitcoin. The vehicle that is being proposed is a digital ADR with the bank acting as agent. The info is being passed around, internally, as part of an investor presentation of some sort. Very interesting concept,” informed the crypto hedge fund.

This is very important for the market since institutional and wealthy investors are searching for new solutions and products to invest in the cryptocurrency world. One of the many different possibilities is related to a crypto ETF. However, banks and financial institutions could provide very interesting and innovative products to their institutional clients.

Every single institution in Wall Street is trying to understand how to better meet the demand of its institutional clients that are asking for exposure to the cryptocurrency market and to Bitcoin.

Image Courtesy of IBEX Magazine.

Get Free Email Updates!

*Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

I will never give away, trade or sell your email address. You can unsubscribe at any time.

Avatar
Bitcoin Exchange Guide News Team
B.E.G. Editorial Team is a gracious group of giving cryptocurrency advocates and blockchain believers who want to ensure we do our part in spreading digital currency awareness and adoption. We are a team of over forty individuals all working as a collective whole to produce around the clock daily news, reviews and insights regarding all major coin updates, token announcements and new releases. Make sure to read our editorial policies and follow us on Twitter, Join us in Telegram. Stay tuned. #bitcoin

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

1 COMMENT

  1. Great idea but not innovative. There is already a company that has adapted the ADR model in this way. They are about to launch tokenised equities and bonds, sources from the secondary market. Citi is behind the curve on this one – the company is called CDRX (cdrx.io), started by guys from Goldmans, JP Morgan etc

LEAVE A REPLY

Please enter your comment!
Please enter your name here

3,467FansLike
2,795FollowersFollow
4,230FollowersFollow

Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

Compound Protocol to Roll Out Decentralized Oracles Dubbed ‘Open Price Feed'

Compound, one of the most popular defi protocol, is all set to introduce open price feeds for lending on its platform using a decentralized...

$2 Million Slippage & Surge in Ether Price on Uniswap Helps Net $40k in Profit

A Uniswap user was able to profit $40,000 thanks to $2 million of slippage and the price of Ether surging north of 15%. It all...

Irish Govt to Target Cryptocurrencies Use in Money Laundering And Terror Financing

The Irish government aims to implement stricter and more stringent laws to curb money laundering and terrorism financing in its financial system, including digital...

Interactive Brokers to Settle $38 Million in Penalties for Violating AML Procedures

Interactive Brokers LLC, a U.S based brokerage that skyrocketed between 2013 and 2018, has agreed to settle a total of $38 million with the...

Ethereum Gas Price Hasn’t Been This High Since its Launch

The price of Ether is back to making its way to $400 level as it hovers around $391 in the green with just $840...

BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.

Start Using Crypto Today