The bank introduces tokenized depositary receipts for pre-IPO shares, targeting wealthy and institutional clients via blockchain.
Citigroup has unveiled a platform allowing wealthy and institutional clients to trade tokenized shares of private, pre-IPO companies using blockchain technology. The system leverages tokenized depositary receipts, representing fractional ownership in private firms, with Citigroup acting as issuer and custodian.
The initiative aims to expand access to private markets, with discussions underway to onboard major private enterprises. The move follows growing interest in blockchain-based securities among Wall Street firms, though adoption remains in early stages.
No immediate market reaction was reported, but the framework could set a precedent for broader institutional use of tokenized assets.