Citigroup seeks to create new product for safe crypto investments 22768
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Priyanka Babu
Sep 11, 2018 at 5:15 AM

Another financial industry biggie embraces the cryptocurrency industry! Citigroup is attempting to offer secure cryptocurrency trading to institutional investors. According to a Business Insider report, Citigroup seeks to offer a new product called DAR [Digital Asset Receipt] to reduce risks of investments in cryptocurrencies. The product is mainly aimed at hedge funds and asset management firms which would like to invest in cryptocurrencies.

Hassle Free Crypto Investments

DAR works like the ADR [American Depository Receipt] which allows US- based investors to buy foreign stocks that are not listed on the domestic exchanges of the country. Citi has been issuing ADR for well over 50 years  and it is one of the biggest issuers of ADR. The financial giant seeks to develop a system on the same lines for cryptocurrency trading as well.

DAR is jointly created by Citigroup’s depository receipts services team and the capital markets origination team, according to the report. DAR provides security to the receipts with the help of Wall Street clearing and settlement services firm, Depository Trust & Clearing Corp. DAR will be issued to the custodian who holds the cryptocurrency assets. The receipt will then be verifies by the Depository Trust & Clearing Corp. This guarantees the security of the crypto asset and also provide the investors a means to track the investment.

The product is fully complaint to the existing regulations, according to the report. Reports suggest that Citigroup has been working on the DAR product for the past two months but it should be noted that no official announcement has been made by the company regarding the launch of the project .

This instrument will prod more institutional investments which according to the consensus will boost the widespread adoption of cryptocurrency. More institutional investments will also mean a spike in trade volumes in the crypto market and increased adoption of cryptocurrencies by financial industry big leagues with the best technology in the industry.

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