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Citigroup has developed a blockchain-based solution that enables institutional and wealthy investors to buy and trade tokenized interests in private companies, The Wall Street Journal reported Thursday. The bank is in talks with major private firms about participation and hopes the platform will become an industry standard.
The platform allows eligible clients to hold tokenized private-company interests alongside traditional securities and is intended to simplify access to private markets, according to the report. Citi says the model offers greater transparency than special-purpose investment vehicles and could be adopted by other financial institutions.
The platform operates on blockchain infrastructure provided by SIX and has already facilitated its first investment transaction involving digital asset firm Kaleido.
The rollout is part of Citigroup’s digital asset expansion and is designed to capitalize on rising demand for access to private companies ahead of public listings. Investor interest has intensified amid expectations that major technology firms such as SpaceX, Anthropic, and OpenAI will soon enter the public markets.
SpaceX is set to debut on Nasdaq tomorrow in what could become the largest initial public offering in history.
Citigroup and peers eye tokenized securities issuance as key market opportunity
The issuance of tokenized securities is a key near-term opportunity for incumbent financial institutions as markets move toward blockchain-based infrastructure, according to a recent Citi report. The bank expects traditional players to remain central by providing issuance platforms, custody, advisory services, and broker-dealer functions within tokenized ecosystems.
While new entrants may increase competition, Citi argues that established institutions will remain important but must adapt to compete with emerging digital asset players. Issuing tokenized securities is viewed as a foundational service enabling adoption of digital securities.
The report also notes that adoption will occur in a hybrid environment where traditional systems coexist with blockchain infrastructure, increasing operational demands in the near term.