Citigroup is launching a new way for wealthy and institutional investors to buy stakes in private companies using blockchain technology as part of a broader push by big banks to bring traditional financial assets to digital asset networks.
The bank on Thursday unveiled what it called Digital Depositary Receipts, a product that allows investors to gain exposure to private company stocks through blockchain-based securities issued and owned by Citi.
The launch comes as many high-growth companies are waiting longer to go public, leaving investors with fewer ways to access coveted private companies. At the same time, demand for private market investments has increased as investors look for opportunities beyond public equities.
“Our focus with Digital Depositary Receipts is to continue to expand responsible access to digital asset markets,” a Citi spokesperson told CoinDesk.
The product debuted with a transaction involving Kaleido, a digital asset and tokenization company backed by Citi Ventures and investors in Citi’s wealth management business.
The structure is based on depository receipts, a long-standing financial product that allows investors to gain exposure to stocks through a bank-issued security. Citi has adapted this model for private companies, registering the securities on blockchain infrastructure operated by the Swiss market operator SIX.
The result is a digital version of a traditional financial instrument. Investors own the depository receipt instead of the underlying shares directly, while Citi acts as both issuer and custodian.
The bank claimed the approach could make private market investing simpler and more transparent than some existing structures, which often rely on special vehicles and multiple intermediaries.
The launch is part of a larger effort by major financial institutions to tokenize traditional assets.
Tokenization refers to representing real assets such as stocks, bonds or bank deposits as digital tokens that can move across blockchain networks.
Proponents say tokenized assets could ultimately reduce settlement times, lower costs and allow markets to operate around the clock.
Citi has been among the banks pushing for that transition. Earlier this month, Citi joined several major US banks in announcing plans to develop a common tokenized deposit network through The Clearing House by mid-2027. The system would convert traditional bank deposits into blockchain-based tokens while keeping funds within the regulated banking system.
For now, Citi’s private share product operates on infrastructure provided by SIX. The bank said it plans to expand the offering over time and eventually support public blockchain networks, potentially allowing a wider range of investors and institutions to participate.
