The company is getting legally ‘creative’ in order to offer customers a tradeable, physical Bitcoin asset, known as a ‘digital’ American Depository Receipt (ADR), which functions as a foreign security product. Citigroup is taking the concept of an ADR and moving it to the digital world that is linked to physical Bitcoin, according to Bitcoin Exchange Guide.
As the new product uses already accepted infrastructure is very important for regulatory agencies at the time of controlling the space. Thus, the structure would place cryptocurrencies within existing regulatory regimes and give big Wall Street investors like asset managers and hedge funds a less risky way of investing in the fledgling asset class.
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