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Citi has launched Digital Depositary Receipts for private-company shares, giving wealth and institutional clients a blockchain-based route into late-stage private firms.
The product is designed to widen access to private markets as more companies stay private for longer. Citi is initially making the offering available to non-US investors, with US access planned later.
Citi Applies DR Model to Private Shares
The structure applies Citi’s existing depositary receipt business to private-company shares. Investors hold a Citi-issued receipt linked to the shares, rather than buying the underlying equity directly.
Citi acts as both issuer and custodian, a setup the bank says can reduce some of the legal and operational complexity tied to special-purpose vehicles commonly used for private-share access.
Kaleido Becomes First Tokenized Issuance
The first issuance involved Kaleido, an institutional tokenization and digital asset platform backed by Citi Ventures. Investors in Citi’s wealth management business participated in the transaction.
The deal gives Citi an initial live use case for tokenized depositary receipts, rather than a private-market tokenization pilot without investor participation.
SIX Supports Regulated Blockchain Setup
The offering uses blockchain infrastructure operated by Swiss market operator SIX. Citi said SIX provides the digital market infrastructure used to tokenize the receipts, while Citi handles settlement and safekeeping as custodian.
That gives the product regulated market infrastructure rather than a crypto-native trading venue.
Issuers Get Controlled Liquidity Route
For issuers, the pitch is controlled liquidity. Private companies can give early investors and employees a clearer route to liquidity while maintaining more control over ownership records and capitalization tables.
That structure may appeal to late-stage companies that want investor access without moving directly toward a public listing.
Citi Eyes More Networks and Markets
The launch fits Citi’s broader view that tokenized financial assets are moving from pilots toward production use. The bank has been working on digital asset infrastructure across custody, settlement, tokenized deposits and private-market access.
Citi said the model could expand over time to other financial market infrastructures and blockchain networks.
