Bitcoin Exchange Guide has published an article suggesting that Citigroup has devised a new mechanism to invest in cryptocurrencies called a Digital Asset Receipt (DAR). The concept will work like an American Depository Receipt (ADR) in which the investor does not buy crypto itself. ADRs were introduced to make it easier for US investors to purchase stock in foreign companies by preventing the need to buy the shares on international exchanges.
DARs will work in a similar way in which the US Bank will purchase the asset from the international company and re-issue them for investors. Citibank will act as the agent issuing the DARs to enable trading without direct ownership of the asset. This means an investor does not need to buy Bitcoin to get involved and has greater security as they do not hold the underlying asset itself.
Business Insider has suggested that Citigroup will use the Depository Trust & Clearing Corporation, a Central Securities Depository custodian, to hold the cryptocurrency. The custodian will hold the assets where ownership can be easily transferred through a book entry.
The development of the crypto space is continuing rapidly with more products entering the market about the cryptocurrencies themselves. This new product prevents the need for an investor to get involved without having to buy Bitcoin or crypto and subsequently holding it.
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