Citi Rolls Out Blockchain-Settled Digital Depositary Receipts for Private Startup Equity

Citigroup has introduced Digital Depositary Receipts, a blockchain-settled instrument that lets institutional investors and high-net-worth clients gain exposure to private startup shares via securities issued and held in custody by the bank. The receipts settle on regulated blockchain infrastructure operated by Switzerland's SIX, using SIX Digital Exchange (SDX) rails. Citi says the framework was built so other Wall Street banks can adopt it, a design choice that could influence how private-market trading develops. Depositary receipts have long allowed investors to own foreign shares through bank-issued certificates. The Wall Street Journal reported that Citi is now applying the same concept to private markets: investors receive a Citi-issued security rather than direct equity, with issuance recorded on SDX. Citi's global lead for digital assets client solutions, Artem Korenyuk, described the approach as a clearer alternative to structures such as special-purpose vehicles and offshore pre-IPO token models, where ownership claims can be harder to interpret. Citi's first transaction involved wealth clients investing in Kaleido, a tokenization platform backed by Citi Ventures. The product is initially available to non-U.S. investors and carries transaction and maintenance fees; U.S. availability is planned for a later date. Citi also said it is in discussions with some of the largest private companies. The launch builds on Citi's May 2025 partnership with SDX, under which the bank became a custodian and tokenization agent for late-stage pre-IPO equities. Sygnum and SBI Digital Markets distribute those assets to clients in Europe and Asia. Investor demand has been fueled by high-profile companies such as SpaceX and Anthropic staying private longer, pushing buyers toward substitutes like tokenized exposure to private shares. Citi research has projected tokenization across private markets could rise 80-fold by 2030. Bitwise CIO Matt Hougan said the move reflects investors working around frictions in the public listing process, arguing blockchain-based market infrastructure is emerging as a route to access. Some commentators, including Chad Steingraber, noted the product remains limited to wealthy and institutional investors rather than retail participants. Separately, Citi, JPMorgan and other U.S. banks are also planning a shared tokenized deposit network targeted for 2027 to enable faster, 24/7 settlement while keeping deposits within the banking system. The Clearing House is expected to operate that network, according to the WSJ. Market participants say the willingness of major private issuers to authorize their shares for such programs will be pivotal in determining whether real-world-asset (RWA) tokenization in private markets moves beyond pilots to meaningful scale.