1. Citigroup to Let Investors Trade Custodian-Held Cryptocurrency
U.S. multinational bank Citigroup is developing a cryptocurrency product to give institutional investors access to crypto markets without owning cryptoassets directly. Citigroup, which had previously taken a centralized approach to cryptocurrency, will reportedly use a revamped version of the American Depositary Receipts (ADR). The end product will be known as a Digital Asset Receipt (DAR), the sources claim. A DAR works much like an ADR, both giving U.S. investors a way to own foreign stocks that don’t otherwise trade on U.S. exchanges.
2. Bitcoin Markets Volatile After US SEC Suspends Trading in Two Crypto-Based Securities
US regulators banned trading of XBT Provider’s Bitcoin and Ether Tracker One securities. The SEC’s statement reads: “The Commission cautions broker-dealers, shareholders, and prospective purchasers that they should carefully consider the foregoing information along with all other currently available information and any information subsequently issued by the company.” If any broker or dealer enters any quotation which is in violation of the rule, the Commission will consider the need for prompt enforcement action. The SEC’s move comes amid a testing time for cryptocurrency investors versus the U.S. regulatory establishment, the regulator having recently rejected a slew applications for a Bitcoin exchange-traded fund (ETF).
3. Winklevoss Brothers Launch Fiat- Backed Stablecoin After New York Regulator’s Green Light
Tyler and Cameron Winklevoss, creators of cryptocurrency trading platform Gemini, have received permission from New York regulators to launch their own stablecoin. Their mission is to launch a Bitcoin exchange-traded fund (ETF) received a second rejection from regulators in July. The Gemini dollar has the backing of the New York Department of Financial Services (NYDFS). The coins are being backed by U.S. dollars that are kept in the United States bank and eligible for FDIC ‘pass-through’ deposit insurance, subject to applicable limitations. Trading of the Gemini dollar begins today, and there is hope it will solve issues associated with time delays between 24/7 crypto markets and time-restricted fiat ones.