Citigroup is reportedly developing a less risky way to securitise cryptocurrencies that would put it at the vanguard of Wall Street’s efforts to enable clients to invest in the largely unregulated market.

Sources close to Citigroup’s plans add that the bank intends to leverage a version of the traditional financial tool known as the American Depository Receipt (ADR) for Bitcoin by creating the Digital Asset Receipt (DAR).

“The foreign stock is held by a bank, which then issues the depository receipt,” the anonymous sources state. “In this case, the cryptocurrency is held by a custodian, and Citigroup issues the DAR.”

Citigroup to act as DAR issuing agent

The new plans mean Citigroup intends to act as an issuing agent of the DARs to enable trading by proxy, which is less risky as it allows investors to buy into Bitcoin without actually owning any BTC, the sources explain.

The new scheme is designed to fall under the existing regulatory framework, providing investors with a relatively safe means of trading cryptocurrency.

The New York-based bank refuses to comment

Citigroup spokespersons declined to comment on the plans, which were initially revealed by Business Insider.

Executives at Citigroup’s headquarters in New York, which earlier this year blocked its customers from using its credit cards to purchase Bitcoin, see receipts as one of the best ways to bring mainstream investors to Bitcoin.