Citi launches market-first tokenized depositary receipts to connect private companies, investors
Stocks
Citi has officially launched Digital Depositary Receipts (DDRs) to tokenize private company shares, marking a significant advancement in institutional private market access. This initiative represents the first instance of a global financial institution acting as both the issuer and custodian for tokenized depositary receipts. The inaugural transaction involved Kaleido, an institutional tokenization platform and Citi portfolio company, connecting with investors through Citi’s Wealth business. By leveraging Citi’s Secondary Private Markets infrastructure, the solution aims to reduce the complexity typically associated with private equity investments. This development is critical for the RWA market as it establishes a rigorous, bank-grade framework for bringing illiquid private assets onto digital ledgers. The interoperable design of the DDRs is intended to scale capital formation while maintaining the high standards of traditional financial oversight. Ultimately, this move signals a shift toward more transparent and efficient digital asset infrastructure for institutional-grade private market participation.
Key points
- ▸Citi launched Digital Depositary Receipts for private shares as issuer and custodian.
- ▸Kaleido completed the inaugural transaction via Citi’s Wealth and Secondary Private Markets divisions.
- ▸The solution aims to increase transparency and scalability in private market capital formation.
- ▸Interoperable infrastructure supports broader institutional access to private company equity.
Background
Citi is a global financial services firm providing a wide range of banking, investment, and advisory services to institutional and retail clients. The company’s Services business focuses on treasury and trade solutions, as well as issuer services, which manage the lifecycle of complex financial instruments. By integrating digital asset capabilities, Citi seeks to modernize traditional settlement and custody processes for private market participants.
Relevance
8.5/10