Citigroup is rolling out a blockchain-based platform that lets wealthy and institutional clients trade tokenized shares of private companies.
Summary
- Citi will offer tokenized private-company shares to wealthy and institutional clients, starting with foreign investors.
- The platform uses tokenized depositary receipts, with Citi serving as issuer and custodian for clients.
- Demand is rising as firms like SpaceX and Anthropic delay public listings while investor interest grows.
The venture will start with foreign investors, according to a Wall Street Journal report.
The platform comes as demand grows for access to large private companies that have stayed away from public markets. Investors have closely watched firms such as SpaceX and Anthropic, which remain private despite strong market interest.
Citi targets private-market access
The new Citi product will use tokenized depositary receipts. These securities will represent exposure to private-company shares and will be authorized and issued by Citi.
Citi will also act as custodian for the assets. That means clients will not be buying direct shares in the same way as public stocks, but they will gain a regulated structure for private-market exposure.
The platform will initially serve non-U.S. investors. Citi plans to expand access over time, including potential availability for U.S. clients if regulatory conditions allow.
The bank is also in talks with large private companies, though it has not named them. The product is designed for investors who already meet wealth or institutional access standards.
Tokenized shares meet delayed IPO demand
The timing reflects a major change in capital markets. Many high-value private companies are taking longer to go public, leaving some investors locked out of late-stage growth opportunities.
SpaceX, Anthropic and other private firms have become major targets for market demand. Their delayed listings have created room for banks and platforms to build new access products.
Tokenization can turn financial claims into blockchain-based units. In this case, the tokens are tied to depositary receipts linked to private-company shares.
That structure may give clients faster settlement and easier portfolio tracking. It may also let banks handle private-market access through more controlled systems than informal secondary transactions.
Wall Street pushes deeper into tokenization
Citi has been building toward this market for several years. The bank previously launched tokenized deposit pilots and has studied how blockchain can change securities, funds and settlement.
The bank’s own research recently projected that the tokenized securities market could reach $5.5 trillion by 2030. It said growth could come from Treasuries, equities and other financial assets moving onto blockchain rails.
As previously reported by crypto.news, Citi’s latest forecast placed today’s tokenized asset market near $17 billion, with a base-case path to $5.5 trillion by 2030.
Other large financial firms are also moving in the same direction. JPMorgan, Citi and other major banks are reportedly planning a tokenized deposit network that could launch as early as 2027.
Risks remain around private share tokens
Tokenized private shares remain a developing market. Investors still face questions around liquidity, pricing, issuer approval and regulatory treatment.
The risks became clear when other platforms tried to offer tokenized exposure to private firms. OpenAI previously said it had not approved or backed some tokenized share products tied to its name.
Citi’s model appears designed to address some of those concerns through custody, issuance controls and bank oversight. The platform also runs through regulated client channels rather than a public retail market.
For now, Citi’s rollout shows that tokenization is moving from testing into more practical Wall Street products. The bank is betting that private-company shares will become one of the next areas where blockchain-based finance gains traction.
