Crypto ADRs Bridge $3 Trillion Market to $87 Trillion Securities Market

Digital assets have grown into a multi-trillion-dollar market, yet they remain largely disconnected from traditional finance. Institutional investors increasingly want to own and monetize digital assets, but most banks, broker-dealers, and asset managers operate on infrastructure designed for stocks and bonds — not blockchain-based assets. While spot crypto ETFs are an important step toward integration, they only enable passive exposure to the asset class. For digital assets to fully mature, they need a mechanism that bridges them with the entirety of the existing capital markets infrastructure in a familiar, regulated way.

Enter American Depositary Receipts (ADRs). For nearly a century, receipts have served as that bridge for international stocks, debt, and commodities, enabling U.S. investors to own foreign assets with the same ease as domestic securities. The first ADR—issued in 1927—set the stage for a system that today facilitates trillions in global investment. ADRs work because they provide fungibility, economic and governance rights, and U.S. regulatory oversight, all while ensuring efficient settlement through the Depository Trust & Clearing Corporation (DTCC). They enhance local liquidity and market access, as seen in companies listing on various exchanges and stocks trading in different regions.

Crypto-focused ADRs will play a similar role for digital assets. Just like foreign markets, crypto operates outside the traditional U.S. capital markets, making it difficult for most institutions to engage without specialized infrastructure. ADRs provide a regulated, accessible, and familiar framework that enables seamless access, efficient two-way convertibility, cost efficiency, and institutional workflow compatibility. Settlement through DTCC via unique identifiers like CUSIP and ISIN ensures seamless alignment with existing workflows.

Institutional demand for digital assets is surging, but most traditional market participants are still tied to DTCC rails and are not set up to directly interact with crypto. ADRs meet these firms where they are today, while also addressing key regulatory, compliance, and operational hurdles. ADRs are SEC-regulated securities with CUSIPs, ISINs, and tickers, ensuring investor protection. Only regulated entities custody and service ADRs, maintaining high compliance standards. ADRs settle through traditional stock clearing systems, just like any other security.

By linking the $3 trillion crypto market with the $87 trillion securities market in DTCC, ADRs can drive institutional adoption and unlock new opportunities in the traditional markets. This includes 24/7 trading, yield, lending and settlement, custody choice, and fund inclusion. ADRs could be used for margin trading, settlement of spot crypto and futures trading, collateralized lending, and structured products. Due to their unique ability to link ADR and spot crypto liquidity, ADRs are an ideal instrument to institutionalize these use cases. Investors can conveniently hold assets on-chain or in traditional brokerage accounts. Due to their security status, ADRs enable crypto ownership in ETFs and institutional portfolios.

ADRs revolutionized global investing by making foreign stocks seamlessly available to U.S. investors. Now, there is a unique opportunity to continue this legacy of enabling market access. By providing a regulated, efficient, and familiar bridge for institutions to engage with digital assets, ADRs could be the key to unlocking crypto’s next stage of growth and ultimately bring new institutional capital on-chain.