RATE Group | Citigroup is the Latest Bank to Offer Crypto Custody, Impact on the Market
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Citigroup is the Latest Bank to Offer Crypto Custody, Impact on the Market

10 Sep Citigroup is the Latest Bank to Offer Crypto Custody, Impact on the Market

Posted at 23:51h in Bitcoin News by

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citigroup bitcoin

According to Business Insider’s Frank Chaparro, sources close to Citibank revealed that the $175 billion New York-based bank will offer crypto custody solutions to institutional investors.

Through the launch of a product called Digital Asset Receipt (DAR), Citigroup will enable institutional investors to invest in cryptocurrencies in a fully insured and regulated manner.

Similar to ETFs

Conceptually, a DAR is similar to exchange-traded funds (ETFs) as investors do not actually have to own the stock or asset that is represented by DAR. For example, Citigroup has been offering DARs based on foreign stocks which US-based investors cannot purchase.

By owning DARs issued by Citibank, investors in the US essentially possess instruments that represent the value of the stocks or assets that are owned by Citibank on behalf of its consumers.

With Bitcoin, Citibank would issue DARs which its clients will be able to purchase equipped with insurance, protection, transaction monitoring,…

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