Citi launches blockchain marketplace for shares of private companies: Report

Citigroup is launching a blockchain-based marketplace designed to offer tokenized depositary receipts representing ownership interests in private companies. This initiative aims to provide wealthy and institutional investors with streamlined access to pre-IPO firms, positioning these assets alongside traditional holdings like public stocks. By utilizing tokenized receipts, Citi intends to create a more transparent alternative to the opaque special-purpose vehicles currently dominating private market access. The platform's underlying blockchain infrastructure is operated by SIX Digital Exchange, a subsidiary of the Swiss SIX Group. This development arrives as companies increasingly remain private for longer periods, capturing significant value before public listings. Unlike some fintech offerings that provide only indirect economic exposure, Citi’s approach focuses on formalizing ownership interests. The move reflects a broader institutional trend of leveraging distributed ledger technology to modernize traditional financial markets and address the surging demand for private equity exposure.