Citigroup to Let Investors Trade Custodian-Held Cryptocurrency, Sources Claim

U.S. multinational bank Citigroup is developing a cryptocurrency product to give institutional investors access to crypto markets without owning cryptoassets directly, anonymous sources told Business Insider September 9.

Citigroup, which had previously taken a centralized approach to cryptocurrency, will reportedly use a revamped version of the American Depositary Receipts (ADR) – a type of security issued since the 1920s that represents securities of a non-U.S. company – to let investors indirectly trade crypto.

The end product will be known as a Digital Asset Receipt (DAR), the sources claim.

According to the “people with knowledge of the plans,” a DAR “works much like” an ADR, both “giving U.S. investors a way to own foreign stocks that don’t otherwise trade on U.S. exchanges.”

“The foreign stock is held by a bank, which then issues the depository receipt. In this case, the cryptocurrency is held by a custodian and the DAR is issued by Citigroup,” Business…