TL;DR:
- Citi is preparing a blockchain-based platform for wealthy and institutional clients to trade tokenized shares of private companies.
- The rollout starts with foreign investors and could later include U.S. clients if regulatory conditions allow.
- The structure uses tokenized depositary receipts issued and authorized by Citi, with the bank serving as custodian while Switzerland-based SIX manages blockchain infrastructure for launch activity and possible network expansion as demand for private-market access grows.
Citigroup is preparing a blockchain-based market for wealthy and institutional clients to trade tokenized shares of private companies, bringing one of Wall Street’s largest banks deeper into private-market digitization. The platform is designed to start with foreign investors, with U.S. access planned later if regulatory conditions allow. The notable shift is private-company exposure moving toward bank-issued tokens, rather than remaining trapped in opaque secondary deals or special-purpose vehicles that many investors struggle to evaluate.
Private markets get a bank-built token wrapper
The structure relies on tokenized depositary receipts, securities issued and authorized by Citi that represent exposure to private-company shares. Citi will also serve as custodian, which means clients are not simply buying ordinary startup stock through a loose marketplace. They are entering a controlled framework where a regulated bank sits between the investor, the asset and the blockchain record. The promise is cleaner access to companies that remain private longer, especially as names such as SpaceX and Anthropic attract demand while delaying public listings.
Citi is already in discussions with large private companies, although no names have been disclosed as launch participants. The blockchain infrastructure is managed by Switzerland-based SIX, with potential expansion to other networks over time. That detail matters because private-company share trading has often depended on fragmented access, paperwork and uneven transparency. The platform tries to turn restricted liquidity into standardized digital rails, offering faster settlement, easier tracking and a more familiar institutional wrapper for investors that meet wealth or eligibility requirements.
The move also fits a broader banking race around tokenization. Citi has explored digital assets through tokenized deposits, securities work and private-market proofs of concept, while other major institutions test similar systems. The tension is obvious: banks once treated crypto infrastructure as a threat, yet now want blockchain features without surrendering control of custody, issuance or compliance. The hard question is whether tokenization solves private-market access or just repackages exclusivity, because this first version still targets wealthy and institutional clients. Even so, the launch marks a clear step.
If tokenized depositary receipts gain issuer support and regulatory comfort, private-company shares could become more tradable without becoming fully public, giving Wall Street a new bridge between late-stage startups and investors while preserving the boundaries that define private markets today in practice for clients now.
