Citi is joining forces with SIX Digital Exchange (SDX) to give approved investors access to tokenized shares in late-stage private companies. The plan was announced in May 2025 and was expected to launch in Q3 2025.
Citi was set to act as custodian and tokenization agent, while SDX would provide its regulated blockchain infrastructure. The system was designed to handle the tokenization, settlement, and safekeeping of private company shares through SDX’s digital Central Securities Depository.
The project has since moved beyond the original plan. In June 2026, Citi launched Digital Depositary Receipts for private shares using regulated blockchain infrastructure operated by SIX. The first transaction involved Kaleido and investors from Citi’s wealth business, showing that the idea had moved into a live service.
ALT TXT: Citi’s PR with SIX Digital Exchange (SDX) Source: PRN
Why tokenized private shares matter
Private company shares can be hard to buy and sell. They are not traded on public exchanges, and deals can involve many firms, manual records, and complex ownership rules. Tokenization puts a digital record around an asset and can make transfers easier to manage.
Citi’s new model uses Digital Depositary Receipts to represent private company shares. Citi acts as the issuer and custodian, while SIX provides the regulated blockchain infrastructure. This means the system uses blockchain without asking investors to deal with an unregulated crypto market.
For private companies, the model could provide another way to give early investors or employees access to liquidity before an IPO. It can also help companies manage ownership records while reaching approved investors in different markets.
For investors, tokenized private shares can offer a more familiar way to access private companies. But tokenization does not remove the normal risks of private markets. Shares can still be hard to value, trading can be limited, and investors may still face restrictions on who can buy or sell them.
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Citi has moved from a plan to a live product
The biggest change since the original announcement is that Citi has now completed a real transaction. In June 2026, the bank said its Digital Depositary Receipts went live with Kaleido, an institutional tokenization and digital asset platform, and investors from Citi Wealth.
The launch also shows how Citi is using blockchain across more than one part of its business. The bank has continued work on tokenized deposits, digital custody, payments, and securities. Citi said its tokenized deposit service was already being used by hundreds of clients for liquidity and working-capital needs.
SDX has also continued to build regulated infrastructure for digital securities. Its platform is designed to let financial assets be issued, held, and transferred in a controlled market structure. The Citi partnership gives that infrastructure a direct link to private company shares.
This matters because the original plan was not simply about putting private shares on a blockchain. It was about connecting private companies, investors, banks, and regulated market infrastructure in one system. Citi’s 2026 launch shows that this model has moved from an announced project to an active financial service.
The next test is adoption. More companies and investors will need to use tokenized private shares before the model can have a large effect on private markets. Blockchain can make records and transfers easier, but it cannot create buyers, set fair prices, or remove the risks that come with private company investments.
Meanwhile, a related Citigroup report suggests that stablecoin regulation could create more than $1 trillion in new demand for U.S. Treasuries by 2030. That adds another example of Citi studying how blockchain-based assets can connect with traditional financial markets.
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