Citigroup launches tokenized trading for private shares

Citigroup has launched a blockchain-based service that lets wealthy and institutional clients buy and sell tokenized depositary receipts representing stakes in private companies. The offering is initially open to foreign investors; the bank plans to extend access to U.S. clients later.

Under the model, Citigroup issues and custodies regulated depositary receipts for private shares and records those receipts on a blockchain ledger. Depositary receipts let investors hold exposure to a company without owning its stock directly. By representing those receipts on a blockchain, Citi enables tradable claims that sit alongside its traditional custodial services.

Citi will charge transaction and maintenance fees for the service. The platform currently runs on a blockchain operated by Switzerland-based SIX and the bank said it may add support for other networks. Citi completed an initial trade involving Kaleido, a tokenization and digital-asset platform, and added that launching the service required coordination across five of its business lines.

Citi presents the tokenized receipts as an alternative to special-purpose vehicles, which are often used to hold private-share positions but have drawn scrutiny over transparency and investor protections. Artem Korenyuk, Citi’s global lead for digital assets enterprise alignment and services enablement, noted that investors using SPVs “don’t know what they’re actually buying” and described the goal as letting clients hold private-company exposure “right next to their Apple stock.”

The launch comes as investors seek earlier access to high-growth private companies that remain private for longer. Citi is also participating with other banks on a tokenized deposit network planned to support round-the-clock settlement for large clients, with activity targeted by the first half of 2027.

Citi says the infrastructure could be used by other banks and that tokenized depositary receipts provide a regulated, tradable route for secondary trading of private shares under bank custody.