Citi launches blockchain product to tokenize private company shares
In brief
- Citigroup launches Digital Depositary Receipts for tokenized private company share exposure
- Debut transaction involves Kaleido, a digital asset company backed by Citi Ventures
- Tokenized assets could reduce settlement times and lower costs in private markets
Private Markets Meet Blockchain
The product debuted with a transaction involving Kaleido, a digital asset and tokenization company backed by Citi Ventures. Citi argued the approach could make private-market investing simpler and more transparent than existing structures that often rely on special-purpose vehicles and multiple intermediaries. By removing layers of intermediaries, the bank aims to streamline how investors access sought-after private firms.
Many fast-growing companies are waiting longer to go public, leaving investors with fewer traditional routes to private equity. Digital Depositary Receipts create a new pathway. The product sits within a broader industry shift toward tokenization, the practice of representing real-world assets such as stocks, bonds, or bank deposits as digital tokens that can move across blockchain networks.
What Tokenization Offers
Supporters say tokenized assets could eventually reduce settlement times, lower costs and allow markets to operate around the clock. Citi plans to expand the offering over time and eventually support public blockchain networks. The bank also joined several of the largest U.S. banks in announcing plans to develop a shared tokenized deposit network through The Clearing House by mid-2027.
"Our focus with Digital Depositary Receipts is to continue to expand responsible access to digital asset markets" — Citi spokesperson
