There’s an altogether a new way rising up for purchasing cryptocurrencies. Investors can buy cryptos without actually owning them.
Citigroup, an NY-based banking giant, has reportedly built a product which will lower the risk the hedge funds and asset management firms have to undertake while investing in cryptocurrencies.
As reported by Business Insider, the product is known as Digital Asset Receipt and it was jointly developed by Citigroup’s depository receipts services team and the capital markets origination team.
Digital Asset Receipt works almost the same way as the American Depository Receipt(ADR) that enables the U.S investors to own foreign stocks that aren’t traded on the domestic exchanges. In this ADR process, the bank acts as a custodian while the investors are issued with a depository receipt.
Likewise, in Digital Asset Receipt, Citigroup will issue the Digital Asset Receipt, a custodian will be responsible for holding the cryptocurrency assets. Upon issuing the receipt, Wall Street clearing and settlement services firm Depository Trust & Clearing Corp will then be informed by the financial giant, as reported by CCN.
The date for the launch of the crypto product is yet to be revealed by Citigroup.
For more updates, stay tuned to CoinTopper.com