Citigroup Expands Blockchain Use with Tokenized Private Shares
- Citigroup has introduced tokenized depositary receipts for trading private company shares via blockchain technology.
- The service targets wealthy and institutional investors, initially available to foreign clients, with plans to expand to the U.S.
- Citi is engaging with large private firms like SpaceX and Anthropic for platform participation.
- Tokenized receipts provide a transparent alternative to special-purpose vehicles (SPVs) for accessing private markets.
- The blockchain infrastructure supporting this venture is operated by Switzerland-based SIX, with potential expansion to other networks.
Citigroup’s new service allows select clients to trade private company shares using blockchain technology, reflecting a growing demand for early access to high-growth businesses like SpaceX and Anthropic. The bank aims to offer a more transparent investment model compared to traditional SPVs.
This initiative marks a significant step in Citigroup’s strategy to integrate blockchain into capital markets, potentially offering investors a clearer route into private markets while enhancing competitive positioning among major banks. (Source)
