There is a lot of speculation around cryptocurrency ETF, ETN and other index funds to accelerate the entrance of institutional investment in the cryptocurrency sphere. Company Citigroup came in cryptocurrency market with the offer of a new product dubbed Digital Asset Receipt or abbreviated as DAR.
This new product became a kind of ACE in the hole for investment because it is derived from successfully working in the stock market American Depository receipts (ADR), which allows U.S. traders to invest in foreign equities which are not traded on US exchanges.
Interesting offer from Citigroup
According to Business Insider, the DAR will allow cryptocurrency investors to keep their funds in a Depository and get a receipt for Citigroup. After the issue of a receipt, the Bank sends an investment in the Depositary Trust & Clearing Corp, which will provide services for storage and transfer. The project is based on cooperation and interaction between the two teams, one of which operates in the capital market, and the second provides custody services and issues receipts on the availability of funds. This is a key factor in the creation of this new investing tool, as it provides much needed and desired legitimacy, which many other initiatives were rejected by the SEC, as not sufficiently supported by traditional financial.
DAR is still in the development phase and sources refuse to comment, at what stage is the project. It is unclear how regulators will perceive the initiative, but if the product is approved by SEC, it will be one of the easiest ways to access institutional investors in cryptosphere without actually having any obstacles.
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