You Can Now Keep Your Bitcoins In A Bank

[Bunsomjelican]

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

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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.

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.

- this is such a great news to us as a bitcoin enthusiast anyway Perhaps in some other nations they've already started that other banks are now starting it too adapting the concepts of crypto, If I am not mistaken Unionbank are open unto it too, then other bank companies also are planning to shift on this adoption. Hope it will continue until all people will become aware by this matter.

[awik p]

It's good to know that this bank accept to store bitcoin but for me i will never store my bitcoin on banks, simply because i don't trust it what if my bitcoin is gone i don't think they will pay it back even with fiat currency. It's better to use a hardware wallet for me it is more secured.

at least this is good news for the development of bitcoin. bank provides a facility to store bitcoin from customers. this means that bank actually recognizes the existence of bitcoin

[Dimas99]

maybe what you say is the positive development of the crypto currency and of course also for countries that have formalized the crypto currency as a valid currency but in my country crypto currencies are prohibited from transacting directly with crypto currencies

[rickadone]

It's good to know that this bank accept to store bitcoin but for me i will never store my bitcoin on banks, simply because i don't trust it what if my bitcoin is gone i don't think they will pay it back even with fiat currency. It's better to use a hardware wallet for me it is more secured.

Well, in a way it is a good thing for those who may have one or two challenges when it comes to being able to handle bitcoins on their own and possibly the banks will come up with some incentives and some features that will make some probably want to have a rethink about it.

Banks have been ripping us off over the years and indeed they just do not want to stop ripping us off as much as they can. It is pathetic that some people can even be considering the idea of keeping bitcoins in a bank when they can simply just be their own banks.

When it comes to adaptation to new technologies, there are certain people who find that extremely hard to be able to achieve on their own, and one of the reasons some would still prefer to go through the traditional way in as much as they want something to do with the space, but all the same, it makes no sense.

Nonetheless, I just see this as a faction of those old traditional folks, who won't find it easy getting used to the blockchain technology, opening wallets online, keeping it safe and all that, and if banks could help bring those factions into play, then it is not a bad idea. It is not like they are going to be forcing anyone anyway, it is a service they want to render, and it is only if you are willing, that you will have to make use of it.

[sulendra12]

I do not believe in the bank and when I store at the bank the bitcoin assets that I have will be known by the bank and it is very terrible and when you save in the bank then you cannot grow the bitcoin that you have, I better use it for trading not just keep quiet .

Do you even know bank interest? It seems you don't know, so stop bullshitting like you know everything.

at least this is good news for the development of bitcoin. bank provides a facility to store bitcoin from customers. this means that bank actually recognizes the existence of bitcoin

This is an answer, they hold your Bitcoins and then give it to other peoples so you can get the interest.

[Pab]

Not for me
CitiGroup is not trustworthy
I will never keep my money on his banks
Whatever fiat or crypto
Big Banks are hardly trying to own crypto market
And i see that  like a biggest danger for crypto movement

[patarfweefwee]

I see this as a good news. I mean a bank is actually lookin at crypto currency as a viable investment enough to provide security for it. That is a huge step into the right direction. I just hope more and more institutions share the same view so we can make crypto currency adoption happen faster.

[cahbagus555]

I think why we need banks to store our bitcoin if we can opening bitcoin wallet for free. Its good that banks accept bitcoin for deposit but i am prefer holding my bitcoin in my own bitcoin wallet because its on my control

[paparexon0414]

Indeed a good news. But maybe we have to wait for more, due it is maybe available for those big investors. This is maybe their stepping stone and a trial period to know if its going successful. Many people will patronize it in the future especially with those who are cryptos entusiasts. The safety of bitcoins is now possible as long as it is in the bank (to tell honestly, online wallets are really not safe and hardware wallet is one option to make our coins safe). I hope they continue to work on it and be available for everyone.

[JohnBitCo]

I do not believe in the bank and when I store at the bank the bitcoin assets that I have will be known by the bank and it is very terrible and when you save in the bank then you cannot grow the bitcoin that you have, I better use it for trading not just keep quiet .

We are using bitcoins because we want to avoid the banks and you are giving us suggestion to use the bank. That's not the bitcoin users who want banks again. We are getting rid of banks through bitcoins as we are not happy with the current strict rules of the banks.

[btctrader69]

nice this is good!!!

[D3m1r4wanti]

I do not believe in the bank and when I store at the bank the bitcoin assets that I have will be known by the bank and it is very terrible and when you save in the bank then you cannot grow the bitcoin that you have, I better use it for trading not just keep quiet .

I really agree with your thoughts, I also don't really like it if bitcoin is only saved to wait for the price to go up and back I sell. the risk is too big, and takes a very long time

[Gheka]

Indeed a good news. But maybe we have to wait for more, due it is maybe available for those big investors. This is maybe their stepping stone and a trial period to know if its going successful. Many people will patronize it in the future especially with those who are cryptos entusiasts. The safety of bitcoins is now possible as long as it is in the bank (to tell honestly, online wallets are really not safe and hardware wallet is one option to make our coins safe). I hope they continue to work on it and be available for everyone.

I do not think this is a good news when this would be a breakthrough for the government in setting strict regulations on crypto, they will control the bitcoin and our transactions through the bank, we will be taxed and facing management from the government, that's not a comfortable thing for all users. People come to crypto and bitcoin when it gives them financial freedom, they do not need to pay taxes and can make transactions without the control of the government, banks are not necessary, users can still manage and preserve their assets, people will not support and accept the bank for bitcoin

[xabre]

Where is the bank have accepted bitcoin or altcoin as investment for saving ? I want to keep and save my money with crypto currency to because I think it more profitable than I have hold and save my money at the bank.

[Hans17]

Well this would be great but for my country still , no show of bitcoin acceptance or regulation regarding of implementing bitcoin as a regular currency.  It's really nice to hear it but it's very nice to hear it when bitcoin become the worlds number one currency and all the nationwide across the world would implement and set regulation. In that way no doubt though, bitcoin will positively shock the world.

[PlusOne88]

It would be good to deposit bitcoins in a bank to make it even more secure. This would allow more people to start trusting bitcoin as the banks can really attract investors. Granting that bitcoin may now be accepted, will these create a problem with the transaction fees? Could this really help bitcoin? Thanks!

[Pumapipa]

This is a giant crypto-leap for every holders and investors out there. This is something that mose of us are waiting for and dreaming of.  With this breakthrough, they recognize that bitcoin is not some phantom coin nor a ponzi scheme. them backing up bitcoin gives assurance to holders out there that their bitcoins will be protected and backed up by big banks like this and soon more banks will adapt this step also.

[Pattart]

I do not believe in the bank and when I store at the bank the bitcoin assets that I have will be known by the bank and it is very terrible and when you save in the bank then you cannot grow the bitcoin that you have, I better use it for trading not just keep quiet .

I myself don't understand what system is used later when the bank accept a deposit with bicoin, I think it will be the same as storing fiat in general, you can withdraw it at any time but of course the control from the bank agency will get you, your identity will no longer be anonymous, maybe that's the consequence..

[Douglasyukanov]

I do not believe in the bank and when I store at the bank the bitcoin assets that I have will be known by the bank and it is very terrible and when you save in the bank then you cannot grow the bitcoin that you have, I better use it for trading not just keep quiet .

but one step ahead for the blockchain revolution,
if not starting From now on to the idea of ​​a bank recognizing Bitcoin As a storage and exchange asset on the market, by providing a Bitcoin banking system, a solution for crypto users and banks for synergy in building global finance in a transparent, credible, and security manner.

[squog]

Well, this could really be a good news for people who keeps losing their logins. This is possibly a nice step in the right direction. I mean we shouldn't alienate banks, we should work with them because they have the mean to make crypto currency big enough to be adopted into businesses worldwide.