According to media reports, the international financial conglomerate Citigroup has developed an investment product is a low risk to cryptocurrency investments legal entities. As Business Insider reports, the product was developed by the departments of Depositary receipts and the formation of capital markets of Citigroup, and received the name of the Digital Asset Receipt (Depositary receipt on the disposal of digital assets).
Issuance of receipts will go directly Citigroup; disposition of funds will be assigned to a selected customer of the Depositary. The deal will be notified to the company in clearing and settlement of investment the Depository Trust & Clearing Corp.
Digital Asset Receipt for its function resembles the standard American Depositary receipt is a certificate that allows US citizens to invest in foreign markets with the intermediation of the foreign Bank, as Trustee. Today, Citigroup is one of the leaders among the depositaries issuing the same document type.
It is expected that Digital Asset Receipt will lend greater legitimacy to the digital assets as a class and will give investors the opportunity to track the status of their investments in the framework of a familiar system. The launch date of the product is not yet known, as the decision of the financial supervision bodies of the USA about its legality. Recall that many investment products associated with the cryptocurrency still has not been licensed by the Commission on securities and exchange Commission (SEC). In particular, we are talking about bitkoenig exchange-traded funds (ETFs). Over the last two months of the refusal to register the received GraniteShares, ProShares (for both the declared funds) Direxion (for five declared funds) and Fund project of the brothers Winklevoss (Tyler & Cameron Winklevoss).
