The banking giant will offer tokenized private-company shares through depositary receipts, reflecting Wall Street's growing embrace of blockchain-based capital markets.
The US banking giant's blockchain marketplace will offer tokenized depositary receipts of private company shares amid Wall Street's broad embrace of tokenized assets. Citigroup is launching a blockchain-based marketplace for private company shares, looking to give wealthy and institutional investors a new way to gain exposure to pre-IPO firms as Wall Street pushes deeper into tokenized finance.
, the platform will use tokenized depositary receipts issued by Citi, which represent ownership interests in private companies. The offering will initially be initially available to foreign investors, with US access planned at a later date. The initiative allows investors to invest in private company shares “right next to their Apple stock, Citi digital asset executive Artem Korenyuk told the Journal. Major banks are increasingly adopting tokenization to modernize traditional financial markets.
Citi argues that structuring private investments through tokenized depositary receipts offers a more transparent alternative to special-purpose vehicles , which have become a common, but often opaque, way for investors to access private companies. That distinction is notable as interest in pre-IPO investing surges. Several fintech platforms, including Robinhood, have explored offering tokenized exposure to private companies such as OpenAI, though those products generally provide indirect economic exposure rather than legal ownership of the underlying shares.
OpenAI last yearOpenAI's warning to investors on buying tokenized shares. Source:The underlying infrastructure of the venture's blockchain will be operated by SIX Digital Exchange, a subsidiary of Switzerland's stock exchange operator, SIX Group. Citi said it is already in discussions with several large private companies about making their shares available on the platform.
Private markets tend to outperform over time Growing interest in pre-IPO investing reflects a broader shift toward private markets, where companies are staying private for longer and generating more of their value before reaching public exchanges. Last December, the American Investment Council published a report citing PitchBook data showing that private equity outperformed the S&P 500 index across five-, 10-, 15- and 20-year investment horizons. This was seen despite the index delivering stronger returns over shorter time periods.
American Investment Council At the time, American Investment Council President and CEO Will Dunham argued that private equity's long-term outperformance strengthened the case for expanding retail access through investment vehicles such as 401 plans. The sector's strong returns, coupled with the trend of companies staying private for longer, have fueled investor interest in pre-IPO opportunities and heightened anticipation for major public listings.
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