Citi launches Digital Depositary Receipts for private market access
- Citigroup introduced Digital Depositary Receipts to facilitate investments in private companies using blockchain technology.
- The product allows investors to own depositary receipts instead of direct shares, simplifying access to private markets.
- The first transaction involved Kaleido, a digital asset company supported by Citi Ventures.
- Citi’s blockchain infrastructure is operated by Swiss market operator SIX, enhancing transparency in private investing.
- The bank aims to expand this offering and eventually support public blockchain networks for broader investor participation.
This launch comes as demand for private-market investments increases, with many companies delaying public listings. The initiative reflects a broader trend among financial institutions to tokenize traditional assets, potentially lowering costs and improving market efficiency.
Citi’s Digital Depositary Receipts represent a significant step towards making private investment more accessible, as seen in their collaboration with Kaleido for the initial transaction.
