USDCiti Launches Tokenized Private-Share Access
Digital Depositary Receipts bring bank-issued private-market exposure onto blockchain rails
TL;DR
- Citi launched Digital Depositary Receipts to give wealthy and institutional investors blockchain-based exposure to private company shares.
- The first publicized instrument is tied to Kaleido and is initially limited to offshore transactions for non-U.S. persons.
- Citi’s structure uses regulated custody and settlement infrastructure rather than giving investors direct ownership of private shares.
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Citi has launched a blockchain-based private-market product that gives wealthy and institutional investors exposure to private company shares through Digital Depositary Receipts, with the rollout disclosed on June 11, 2026.
The structure allows investors to hold bank-issued digital securities linked to private-company shares, rather than the underlying shares themselves. Citi is using the product to connect investors with private company equity through blockchain-based records while keeping issuance and custody inside a regulated banking framework.
A Citi spokesperson said, “Our focus with Digital Depositary Receipts is to continue to expand responsible access to digital asset markets.”
The Wall Street Journal reported on June 11 that Citigroup is rolling out tokenized shares of private companies for wealthy and institutional clients, with access initially restricted to non-U.S. investors. The product is initially limited to foreign investors, and Citi hopes other financial institutions eventually adopt the structure.
Citi Adapts Depositary Receipts for Private Markets
Digital Depositary Receipts use a model based on traditional depositary receipts, which let investors gain exposure to shares through a bank-issued security. Citi is applying that structure to private-company shares and recording the exposure on blockchain infrastructure.
Under the model, investors own the depositary receipt, not the underlying private shares directly. Citi acts as both issuer and custodian, keeping the product within a bank-led structure rather than making the shares freely transferable through an open token market.
Artem Korenyuk, Citi’s global lead for digital assets enterprise alignment and services enablement, told The Wall Street Journal that the model lets clients place private-company shares “right next to their Apple stock.”
The comment reflects Citi’s effort to make private-market exposure operationally closer to normal brokerage holdings, while the product remains legally and liquidity-wise distinct from public equities.
The launch comes as many fast-growing companies are waiting longer to go public, leaving investors with fewer ways to access sought-after private firms. Citi argues the approach could make private-market investing simpler and more transparent than existing structures that often rely on special-purpose vehicles and multiple intermediaries.
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Kaleido Anchors the First Publicized Instrument
The product debuted through a transaction involving Kaleido, a digital asset and tokenization company backed by Citi Ventures and investors in Citi’s wealth management business.
A SIX document identifies the first publicized instrument as an unsponsored digital depositary receipt issued by Citibank, N.A., representing deposited voting common stock of Kaleido, Inc., under ISIN CH1507409733.
The Kaleido-linked Digital Depositary Receipt is not registered under the U.S. Securities Act. According to the SIX document, it can be offered or transferred only through offshore Regulation S transactions to non-U.S. persons.
The same SIX document says holders must be accredited investors. It also warns that the Digital Depositary Receipt is not the same as holding the underlying shares and flags risks including limited information, thin trading, price volatility, and the possibility of losing all or substantially all of the investment.
SIX Infrastructure Supports Citi’s Tokenized Share Offering
The product runs on blockchain infrastructure operated by SIX, the Swiss market operator. Citi’s setup is tied to its partnership with SIX Digital Exchange, or SDX.
Citi’s partnership with SDX was announced in May 2025. The project was described as a way to tokenize, settle and safekeep late-stage pre-IPO equities on SDX’s blockchain-based Central Securities Depositary platform.
The structure is designed to wrap private shares in a digital security and handle them through regulated custody and settlement infrastructure. That makes the offering a controlled financial product using blockchain records, not a direct public listing of private equity.
Citi currently operates the private-share product on SIX infrastructure. The bank said it plans to expand the offering over time and eventually support public blockchain networks, which could broaden participation among investors and institutions.
Citi reportedly plans U.S. access after its 2026 rollout, with SDX and more issuers in view. Adoption will depend on issuer participation, investor demand, regulatory comfort, and actual liquidity.
Tokenization Strategy Extends Beyond Private Shares
Citi’s private-share launch is part of a broader institutional push to represent real-world assets such as stocks, bonds, bank deposits, and private shares as digital tokens or blockchain-recorded securities.
Tokenization supporters argue that tokenized assets could reduce settlement times, lower costs, and allow markets to operate around the clock.
Earlier in June 2026, Citi joined several of the largest U.S. banks in announcing plans to develop a shared tokenized deposit network through The Clearing House by mid-2027.
That planned deposit network would convert traditional bank deposits into blockchain-based tokens while keeping funds inside the regulated banking system. Citi’s private-share product and tokenized deposit work show the bank is pursuing blockchain infrastructure across both securities and deposits.
Citi’s Tokenization 2030 report estimates the current global tokenized asset market at about $17 billion, with a $5.5 trillion base case by 2030 and an $8.2 trillion bull case. Citi expects early tokenization growth to be led by public-market securities, especially U.S. equities and Treasuries, while private markets are expected to remain slower because they are more structurally constrained.
FAQ
What did Citi launch?
Citi launched Digital Depositary Receipts for blockchain-based exposure to private company shares.
Do investors own the private shares directly?
No. Investors own the depositary receipt, not the underlying private shares.
Who is the first publicized instrument linked to?
The first publicized instrument is linked to Kaleido, Inc.
Is the product available to U.S. investors?
The initial rollout is limited to offshore transactions for non-U.S. persons.
This article has been refined and enhanced by ChatGPT.
