Citi, Swiss Firm SDX to Unveil Tokenization for Pre-IPO Shares Market in Q3
Citigroup will collaborate with Switzerland's Six Digital Exchange to offer tokenized shares in pre-IPO companies, starting in Q3 2023. Citi will handle the tokenization and custody of shares, targeting institutional investors for high-growth, venture-backed private companies. This initiative aims to enhance liquidity management for early investors and simplify ownership tracking. Marni McManus from Citi highlighted the opportunity in private markets and the potential to digitize a traditionally manual industry. The tokenization of real-world assets (RWAs) has surged, with a market cap of $22.1 billion, up 245% from May 2023. RWAs are projected to reach $50 billion by year-end. Traditional financial institutions are increasingly exploring Web3, with Citi previously simulating private equity tokenization with AVAX and other banks conducting pilot programs.
