Connecting Closed Companies and Investors, Citi Launches First Tokenized Depositary Receipts
Citi has officially launched Digital Depositary Receipts (DDRs) for closed-market shares, marking a significant milestone in the tokenization of private equity assets. By acting as both the issuer and the custodian, Citi eliminates the need for complex third-party Special Purpose Vehicles, thereby reducing hidden costs and operational friction. The platform utilizes blockchain infrastructure operated by SIX, a regulated digital custodial and settlement institution, to ensure institutional-grade security and transparency. This initiative addresses the growing liquidity gap for private companies facing longer timelines for traditional IPOs. The inaugural transaction involved Kaleido, a Citi portfolio company, and investors from Citi's Wealth business line. This model allows issuers to expand their investor base without altering primary ownership rights or complicating capitalization tables. By integrating these tokenized assets into its existing Wealth platform, Citi provides clients with familiar, secure access to previously illiquid private market opportunities. The project represents a coordinated 'One Citi' effort to build an expandable, interoperable framework for future digital asset issuances across various blockchain networks.