Citigroup Helps Investors Store Bitcoins

Citigroup, one of the largest financial conglomerates, is developing a product called Digital Asset Receipt to help institutional investors deal with cryptocurrency.

The DAR concept assumes that investors do not actually own assets, but only instruments that reflect their value. At the same time, they are owned by the bank on behalf of clients, therefore, they resemble ETFs. Citigroup plans to offer insured Bitcoin DARs with traceable transactions and other security systems in line with all US regulatory requirements.

According to Frank Chaparro, the bank will notify the Wall Street intermediary acting as the custodian of each digital asset receipt as soon as it is issued. Although the work on the creation of the instrument has just begun, experts believe that the launch of new products for institutional investors will increase liquidity and improve the market infrastructure..

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Citigroup Helps Investors Store Bitcoins

Goldman Sachs and Citigroup are among the first banks to offer secure cryptocurrency storage services. Analysts are confident that the launch of any instrument that can interest large funds and conglomerates will lead to the injection of significant capital into the virtual currency market. Billionaire Mike Novogratz Expects Custody Services, Not ETFs, Will Drive Cryptocurrency Medium-Term Growth.

So far, the SEC has not approved a single application for a Bitcoin ETF, recently suspended trading in two exchange-traded products based on cryptocurrencies due to inaccuracies in the description.

 

Citigroup Helps Investors Store Bitcoins

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