Citi completed the first issuance of its Digital Depositary Receipts with portfolio company Kaleido and investors in its Wealth business, opening a new route into private-company shares.
The product tokenizes private-market depositary receipts on SIX’s regulated blockchain infrastructure, with Citi acting as both issuer and custodian — a first for a global financial services firm.
Citi is pitching the structure as a simpler alternative to fragmented secondary markets and SPV-based setups, as longer IPO timelines push private companies to seek liquidity without going public.
For issuers, the model aims to broaden investor access without changing underlying ownership rights; for Wealth clients, it adds private-market exposure through existing platforms and safeguards.
Citi said it may extend the offering across both digital and traditional market infrastructure and to multiple blockchain networks, positioning the launch as a scalable template for future deals.
Can Citi’s tokenized receipts truly democratize private market access or just create a new, exclusive digital investment tier?
With Citi now tokenizing private equity, how will rival banks and fintechs compete in this new digital asset race?
As Wall Street tokenizes private assets, what new systemic risks arise from centralizing control on decentralized blockchain technology?
Citi Unveils Blockchain Platform for Tokenized Private Shares, Aiming for $4 Trillion Market by 2030
Overview
Citi has launched a new blockchain-based platform for tokenized private-market receipts, marking a major step in private market investing. The platform addresses the growing interest in pre-IPO investments by offering tokenized depositary receipts, which are more transparent than traditional special-purpose vehicles. This transparency sets Citi apart from other platforms, especially since some, like those offering 'tokenized stocks' in companies such as OpenAI, do not provide actual equity ownership. Citi’s model gives investors a more direct and clear way to participate in private markets, making private equity investing more accessible and trustworthy.