Citigroup has introduced a blockchain-based investment structure that allows institutional and eligible investors to gain exposure to private company shares through tokenized depositary receipts, expanding access to a segment of the market that has traditionally been difficult to access.
Citigroup has unveiled a new digital asset offering designed to connect private companies with a broader pool of investors through tokenized securities recorded on blockchain infrastructure. The launch marks the bank’s latest move into the growing market for tokenized financial assets.
The new product, known as Digital Depositary Receipts (DDRs), provides investors with exposure to shares of private companies through a familiar depositary receipt structure that has been adapted for digital markets. Citi will serve as both the issuer and custodian of the tokenized instruments, a model the bank describes as a first for a global financial institution in the private markets space.
The platform is intended to address growing demand for access to private companies, many of which are remaining privately held for longer periods before pursuing public listings. Traditional routes into private markets often involve complex structures, multiple intermediaries and limited transparency. Citi’s tokenized model aims to simplify the process while maintaining institutional-grade safeguards.
To support the initiative, Citi is working with Switzerland-based SIX, whose regulated digital securities infrastructure provides the blockchain framework for issuing, settling and safeguarding the tokenized assets. The bank indicated that the platform could eventually be expanded to additional blockchain networks and financial market infrastructures.
The launch comes as financial institutions increasingly explore tokenization, a process that converts ownership rights in traditional assets into digital tokens. Banks and asset managers have been investing heavily in blockchain-based systems as they seek to improve efficiency, transparency and accessibility across capital markets.
Citi’s first transaction under the new framework involved an investment in Kaleido, a digital asset and tokenization platform. The bank said the initiative reflects its broader strategy to expand digital asset capabilities and modernize access to private market investments.
Source: This article is based on Citigroup’s press release
Citi Launches Market-First Tokenized Depositary Receipts to Connect Private Companies and Investors
