Citigroup has launched a blockchain-based marketplace for trading tokenized depositary receipts of private company shares, initially for foreign investors. The platform aims to provide greater access to pre-IPO firms, with U.S. client access planned for a later date.
Citigroup's move signifies a major financial institution's embrace of tokenization for private markets, potentially increasing liquidity and access for investors in pre-IPO companies.
Citigroup has launched a blockchain-based marketplace for trading tokenized depositary receipts of private company shares, aiming to provide investors with greater access to pre-IPO firms. The platform, which utilizes infrastructure from SIX Digital Exchange, initially serves foreign investors, with plans to extend to U.S. clients later.
Citigroup's global head of digital assets, Artem Korenyuk, stated that the platform allows clients to invest in private company shares alongside their public equities. The bank has already facilitated its first transaction, involving wealth clients investing in Kaleido, an institutional tokenization platform. Citigroup acts as the custodian for the assets represented by the tokenized receipts.
This initiative aligns with a broader trend of financial institutions exploring asset tokenization to modernize markets. Citigroup argues that tokenized depositary receipts offer a more transparent alternative to special-purpose vehicles commonly used for private investments. The move comes amid growing interest in private markets, where companies are staying private for longer periods.
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