Citigroup Planning Crypto Trading by Issuing Receipts
Citigroup Inc. is developing a new mechanism for trading cryptocurrencies such as Bitcoin that would put it at the forefront of Wall Street’s efforts to let clients bet on the largely unregulated market, according to a person with knowledge of the plans. The bank plans to act as an agent issuing so-called digital asset receipts, or DARs, to enable trading by proxy without direct ownership of the underlying coins, said the person, who asked not to be identified because the information isn’t public. The structure is designed to fall within existing regulatory regimes, giving investors a relatively safe method of trading in crypto. A representative for the New York-based bank declined to comment on the plans.