Overview
- Citi unveiled the commercial platform on Thursday and said it runs on SIX’s blockchain infrastructure and has already completed a first transaction involving digital-asset firm Kaleido.
- The product uses tokenized depositary receipts, a familiar wrapper that represents economic exposure to private-company shares without conveying direct stock ownership.
- The rollout will start with non-U.S. wealthy and institutional clients and Citi says any U.S. expansion would depend on regulatory approval and compliance conditions.
- Banks and investors see this as a response to strong demand for late-stage private exposure, but adoption faces open questions about secondary-market liquidity, fair pricing, issuer consent, and regulatory treatment.
- Citi says its bank-led model aims to reduce past tokenization problems by acting as issuer and custodian; other major banks are developing similar tokenization rails and regulators and market participants will determine how widely the product spreads.