Citigroup is launching a new way for wealthy individuals and institutional investors to buy shares in private companies using blockchain technology, as part of a broader push by major banks to bring traditional financial assets into digital asset networks.
The bank announced on Thursday what it calls digital depositary receipts. This is a product that allows investors to gain exposure to the equity of private companies through blockchain-based securities issued and held by Citi.
The announcement comes as many fast-growing companies are taking longer to go public, leaving investors with fewer ways to access popular private companies. At the same time, demand for private market investments is surging as investors explore opportunities beyond public equity.
“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 in a deal 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 depositary receipts, a long-standing financial instrument that allows investors to gain exposure to equity through bank-issued securities. Citi adapted that model for private companies, recording securities on blockchain infrastructure operated by Swiss market operator SIX.
The result is digital versions of traditional financial products. Rather than owning the underlying shares directly, investors own the depositary receipts, with Citi acting as both issuer and custodian.
The bank argued that this approach could make investing in private markets simpler and more transparent than existing structures, which often rely on special purpose vehicles or multiple intermediaries.
The launch is part of a larger effort by major financial institutions to tokenize traditional assets.
Tokenization refers to representing real-world assets, such as stocks, bonds, and bank deposits, as digital tokens that can be moved across blockchain networks.
Proponents say tokenized assets could eventually speed up settlement times, lower costs and allow markets to operate around the clock.
Citi is one of the banks driving that transition. Earlier this month, Citi joined several large U.S. banks in announcing plans to develop a shared tokenized deposit network through a clearinghouse by mid-2027. The system converts traditional bank deposits into blockchain-based tokens while keeping funds within a regulated banking system.
Currently, Citi’s private share products run on infrastructure provided by SIX. The bank said it could expand its offering over time and eventually support public blockchain networks, allowing a wider range of investors and institutions to participate.
