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Citi Launches Digital Depositary Receipts to Tokenize Pre‑IPO Private Shares

The bank is using SDX’s regulated blockchain to offer qualified non‑U.S. wealthy and institutional clients tradable receipts that give economic exposure to private companies while wider U.S. access awaits regulatory clarity.

Overview

  • Citi unveiled the product and completed its first live tokenization on June 11, 2026, issuing Digital Depositary Receipts that represent economic exposure to private‑company shares rather than direct stock ownership.
  • The receipts are recorded on SIX Digital Exchange’s regulated distributed‑ledger infrastructure and are issued and custodized by Citi so clients can hold them alongside public securities in their accounts.
  • The initial rollout is limited to eligible non‑U.S. wealthy and institutional clients, with U.S. distribution planned later if regulators provide clear guidance.
  • Citi is inviting other banks to join the SDX rails to help create deeper secondary markets, though trading depth is uncertain because unsponsored receipts can face information gaps and limited liquidity.
  • The move builds on broader bank tokenization work — including a planned Clearing House tokenized deposit network targeted for 2027 — and signals how tokenized real‑world assets could reshape private‑market access if legal and market obstacles are resolved.