Citi opens new route into private markets with tokenized share offering
Citigroup is launching Digital Depositary Receipts, a blockchain-based product that lets wealthy and institutional investors gain exposure to private company shares through bank-issued securities. The first transaction involved Kaleido, a digital asset and tokenization firm. The structure mirrors traditional depositary receipts, but records the securities on blockchain infrastructure run by Swiss market operator SIX. Citi acts as issuer and custodian, while investors hold the receipt rather than the underlying shares directly. The product aims to make access to private markets simpler and more transparent as more high-growth companies stay private longer and investor demand for private assets rises. It also fits Citi’s broader push to tokenize traditional financial assets, alongside efforts by major banks to build blockchain-based deposit networks. Citi says it plans to expand the offering and eventually support public blockchain networks.
