You Can Now Keep Your Bitcoins In A Bank

[Wingzcrypto2018]

Crypto receipts!

This is the most perfect thing I have ever read about the blockchain:

Citi has developed an instrument it is calling a digital asset receipt. It works much like an American depositary receipt, which have been around for decades to give US investors a way to own foreign stocks that don’t otherwise trade on US exchanges. The foreign stock is held by a bank, which then issues the depositary receipt.

In this case, the cryptocurrency would be held by a custodian, with the so-called DAR issued by Citigroup, the people said. The bank would alert the Depository Trust & Clearing Corp., a Wall Street middleman that provides clearing and settlement services, that it issued a receipt, one of the people said. That lends an important layer of legitimacy and gives investors a way to track the investment within a system that they’re already familiar with, the person added.

I want to cry. I want to give those paragraphs a hug. I have written, more than once, about the complexities and inefficiencies of having pretty much all U.S. stocks held by DTCC. “It’s enough to make you wish for a blockchain,” I once wrote. A secure, open, permissionless, immutable record of who owns what, one that doesn’t require investors to trust either a bank or a central Wall Street intermediary or to rely on those intermediaries’ old-fashioned systems: That is a core dream of the blockchain, a central appeal of cryptocurrencies.

And then here is Citigroup Inc. looking at investor demand and concluding: Yes, sure, Bitcoin is great, but what Bitcoin investors really want is to hold Bitcoins in the form of receipts issued by a giant bank and registered at DTCC. That’s where the real innovation is! That’s what the people want! “Take this blockchain away from me,” they cry, “and give me the old system that I know!”

A claim that you sometimes hear is that the blockchain will revolutionize back-office processes — settlement, custody, etc. — in the financial system. But look at the actual experience of cryptocurrency custody. The main story of institutional investment in cryptocurrency these days is a story of custody, broadly speaking: Large institutional investors want to get access to Bitcoin, but they do not want to own actual Bitcoins, themselves, on the actual Bitcoin blockchain. They want Bitcoin exchange-traded funds, or Bitcoin futures, or Bitcoins held in custody by regulated crypto exchanges or traditional big banks, or, sure, crypto depository receipts, why not. Everywhere there is a blockchain, a trusted central intermediary — often a bank or other old-school Wall Street middleman! — springs up to make it useful. Does that tell you anything about the prospects for blockchains to replace central intermediaries?

I confess, though, that it goes the other way too: “Two financial technology companies won New York state approval to issue cryptocurrencies pegged to the U.S. dollar,” the Gemini dollar and the Paxos Standard, “creating more regulated and transparent competitors to Tether and other so-called stable coins,” which are in turn competitors to … the dollar. If you want to hold your Bitcoins through a bank, you can, but on the other hand if you want to hold your dollars through a blockchain, you can do that too.

https://www.bloomberg.com/view/articles/2018-09-10/keep-your-bitcoins-in-the-bank

....

Summary: Citibank has created something they call a "digital asset receipt(DAR)" which could allow purchasers of bitcoin to have banks hold their coins. The details aren't clear. There isn't much information posted here about minimum purchasing amounts or who digital asset receipts will be marketed to. Its nice to see innovation and new offerings for crypto enthusiasts. Although I have a feeling these digital asset receipts might come bundled with $100,000 dollar minimum investments and cater only to high(er) end demographics.

I would guess some would opt for DAR's if they could provide insurance on bitcoins and crypto up to limited amounts.

This is another great news from among the crypto enthusiast to know this things anyway.
Citibank if I am not mistaken is one of the biggest credit card company international, Just what I thought
that in the near future most of the banks will adapt the concept of the blockchain that they would accept crypto into their business.

[naidray]

I still dislike the notion of "banks" in crypto. I am a person who has never gotten a single loan from any banks, I do not use credit cards and preferably if I could I would totally never even have a bank account but unfortunately I need one to cash out my bitcoins easily.

Without banks I would have to find people to pay me in cash face to face to get my bitcoins and that is just really hard to do hence I have a bank account for that purpose only. Even when I was working at a job I had a bank account so they could deposit my salary there and cashed out all my salary on the day it was paid and never used the banks.

Now, as an individual who ran away from banks and came to crypto, thinking about a "crypto bank" really disgusts me, I hate places like xapo and coinsbank and so forth, they are not doing what crypto was suppose to be about.

[Btcjunpitz18]

Amazing, I am greatly proud and honor that bitcoin is now accepted by most banks. It is happier if the whole world (especially in bank) would also accept bitcoin.

[yitzjoe]

this will create a new arrangement for our crypto assets by the bank, what is the difference between this and the central bank in general. I will return a little to deposit here, I will save the funds myself because the blockchain is safe and more efficient

[Finestream]

this will create a new arrangement for our crypto assets by the bank, what is the difference between this and the central bank in general. I will return a little to deposit here, I will save the funds myself because the blockchain is safe and more efficient

Right.I agree.There's no need for another bank because our wallet alone are much more safe and secured,and the fact that we cannot controlled by any institution or group.But maybe some of the people here would  still love to put their savings on that particular bank.It's still good to know that cryptos are now being recognized.

[charlotte04]

Crypto receipts!

This is the most perfect thing I have ever read about the blockchain:

Citi has developed an instrument it is calling a digital asset receipt. It works much like an American depositary receipt, which have been around for decades to give US investors a way to own foreign stocks that don’t otherwise trade on US exchanges. The foreign stock is held by a bank, which then issues the depositary receipt.

In this case, the cryptocurrency would be held by a custodian, with the so-called DAR issued by Citigroup, the people said. The bank would alert the Depository Trust & Clearing Corp., a Wall Street middleman that provides clearing and settlement services, that it issued a receipt, one of the people said. That lends an important layer of legitimacy and gives investors a way to track the investment within a system that they’re already familiar with, the person added.

I want to cry. I want to give those paragraphs a hug. I have written, more than once, about the complexities and inefficiencies of having pretty much all U.S. stocks held by DTCC. “It’s enough to make you wish for a blockchain,” I once wrote. A secure, open, permissionless, immutable record of who owns what, one that doesn’t require investors to trust either a bank or a central Wall Street intermediary or to rely on those intermediaries’ old-fashioned systems: That is a core dream of the blockchain, a central appeal of cryptocurrencies.

And then here is Citigroup Inc. looking at investor demand and concluding: Yes, sure, Bitcoin is great, but what Bitcoin investors really want is to hold Bitcoins in the form of receipts issued by a giant bank and registered at DTCC. That’s where the real innovation is! That’s what the people want! “Take this blockchain away from me,” they cry, “and give me the old system that I know!”

A claim that you sometimes hear is that the blockchain will revolutionize back-office processes — settlement, custody, etc. — in the financial system. But look at the actual experience of cryptocurrency custody. The main story of institutional investment in cryptocurrency these days is a story of custody, broadly speaking: Large institutional investors want to get access to Bitcoin, but they do not want to own actual Bitcoins, themselves, on the actual Bitcoin blockchain. They want Bitcoin exchange-traded funds, or Bitcoin futures, or Bitcoins held in custody by regulated crypto exchanges or traditional big banks, or, sure, crypto depository receipts, why not. Everywhere there is a blockchain, a trusted central intermediary — often a bank or other old-school Wall Street middleman! — springs up to make it useful. Does that tell you anything about the prospects for blockchains to replace central intermediaries?

I confess, though, that it goes the other way too: “Two financial technology companies won New York state approval to issue cryptocurrencies pegged to the U.S. dollar,” the Gemini dollar and the Paxos Standard, “creating more regulated and transparent competitors to Tether and other so-called stable coins,” which are in turn competitors to … the dollar. If you want to hold your Bitcoins through a bank, you can, but on the other hand if you want to hold your dollars through a blockchain, you can do that too.

https://www.bloomberg.com/view/articles/2018-09-10/keep-your-bitcoins-in-the-bank

....

Summary: Citibank has created something they call a "digital asset receipt(DAR)" which could allow purchasers of bitcoin to have banks hold their coins. The details aren't clear. There isn't much information posted here about minimum purchasing amounts or who digital asset receipts will be marketed to. Its nice to see innovation and new offerings for crypto enthusiasts. Although I have a feeling these digital asset receipts might come bundled with $100,000 dollar minimum investments and cater only to high(er) end demographics.

I would guess some would opt for DAR's if they could provide insurance on bitcoins and crypto up to limited amounts.

That is a good start. I hope that they could also accept different kinds of coins in there someday. This is good since we can sue someone if our coins got lost. 

[fipper]

good and increasingly reliable crypto currency development news if you can save in the bank of course security will be guaranteed, but in my country crypto currency is still not legal and the government still prohibits transactions directly using crypto currencies

[MKH]

It is a great news that bank are accepting bitcoin to deposit in bank account..Its a very big news for the big investors because they will not afraid if their bitcoin security..

[1Referee]

But maybe some of the people here would  still love to put their savings on that particular bank.It's still good to know that cryptos are now being recognized.

The majority of the people in the world can't deal with the responsibility of taking care of their own value storage, which is why they depend on central entities such as banks to do it for them. Crypto allowing you to be your own bank isn't of any value to most people not caring about decentralization. It's not for nothing that a crypto bank as Coinbase has gained so much popularity since its existence.

By the time Coinbase is granted an actual banking license, they can be seen as the first ever crypto bank, and the average joes will love that more than they love themselves.

Even some of those who say that they value decentralization and heavily dislike banks have a part of their private keys stored within bank lockers. In other words, it's not just average joes who put their confidence in banks because they can't entirely take care of the storage part themselves. 

[Rune]

Sounds like you give the bank your money and you get back a IOU not that there really storing you money good way to get ripped off like always.
Here is my money give it back to me whenever I ask for it if you still have it thanks!!

There needs to be a better solution to storing large sums of money so trusting the bank is not a good looking option. its a terrible option but people still see it as there best bet.

[lionheart78]

Banks just want to find a way to be in control by all means. Sure, maybe for some category of people who are dumb enough not to know they are their own bank or not so sure how good they are to securing their cryptocurrencies or bitcoin, may see it as a great service to make use of, but in reality, for any sane person, why will they ever want to use a bank, when they can easily just store whatever they have in their own wallet and as far as I am concerned, this is no different than keeping your funds in an exchange as a third party is involved and that makes the idea a centralized one.

I totally agree.  Citibank had realized that they cannot stop people from acquiring cryptocurrency so they need to adopt and be the one to get profit by accepting cryptocurrency deposits.  It is a smart move on their part and a great boost to cryptocurrency.  Even though we can think of them controlling things about cryptocurrency, it gives cryptocurrency a positive effect since people who are so hesitant to invest in it can think that cryptocurrency were starting to be accepted by government.

[shiming]

This news is good news. For encryption. But I still hope to put BTC in my own hands, because I am not willing to believe that the bank can safely help me save.I don't know what you think.

[Lumi3004]

An interesting information about Bitcoin, again when the Bitcoin price is falling now there are banks that think positively about Bitcoin with good intentions saving coins is very interesting to take example of other banks that bitcion is needed by the wider community.

[yusupjatigumilar]

Wow! It's really good news for us! I'm interested in it. Hope it will help us to grow more. And it's a really a good news for Crypto marketers.

I agree with you, this is good news and certainly will make cryptocurrency prices more expensive and continue to grow, this is because it will increase the confidence of investors to invest their capital in cryptocurrencies and automatically if many new investors invest their capital in Cryptocurrency, according to the law of supply and demand, prices will skyrocket

[susanapa]

Yes it is good news for everyone to invest as we do, it will help us grow and it is also a turning point for all banks to accept it.

[supermine]

I don't think we are in need for that to store a decentralized entity in a banks this will make no difference than storing the fiat into some banks,maybe people think that their money is not safe if they are holding all of them but when the third party holds it it has more disadvantages than you think just like you need to seek their permissions whenever you are making the transactions.And moreover you are giving control to someone.

[anjho.ace]

Here in my country you can't open an account for cryptocurrnecy.
the rule says, Every transaction you will deposit on your account with cryptocurrency can be gone with out any reason!
Any deposit related with crypto is not legal. this is from the Central bank of the Philippines.

[spongegar]

I think that is a good idea. It is especially safe for people who keeps losing their log ins. I guess these banks have intense security and personal verification so we could access our accounts without the fear of hackers galetting all our hard earned coins. I just hope that ilthe fees are not as exhorbitant and is still pro crypto currency.

[olubams]

This is a good development though as it shows that the fiat and the crypto world can really work together to achieve financial breakthrough and with one not seeing the other as a threat. The concern for me is the bank taking this giant step without having a solid backing of the government whether it will choose to adopt crypto or not. Should in case that government of the country then go all negative for crypto, every amount saved in crypto becomes confiscated with no one to be held liable.

[Jateng]

Summary: Citibank has created something they call a "digital asset receipt(DAR)" which could allow purchasers of bitcoin to have banks hold their coins. The details aren't clear. There isn't much information posted here about minimum purchasing amounts or who digital asset receipts will be marketed to. Its nice to see innovation and new offerings for crypto enthusiasts. Although I have a feeling these digital asset receipts might come bundled with $100,000 dollar minimum investments and cater only to high(er) end demographics.

I would guess some would opt for DAR's if they could provide insurance on bitcoins and crypto up to limited amounts.

This is a good improvement. There is a bank that is supporting bitcoin. Crypto exposure is unstoppable. Big people who have no idea about bitcoin will already have an idea about it. But if the purchase minimum is $100k, it will be exclusive for a the rich person. Me, I admit I can't buy even a minimum even though the bank has many branches in our country.