Citigroup has launched Digital Depositary Receipts, a blockchain-based product that gives institutional and wealthy investors exposure to private startup shares through securities the bank issues and safekeeps.
The receipts settle on regulated blockchain infrastructure operated by Switzerland’s SIX. Citi designed the system so other Wall Street banks can adopt it, a detail that could shape how private markets trade.
How Citi’s Digital Depositary Receipts Work
Depositary receipts have historically let investors hold foreign stocks through bank-issued certificates.
According to the WSJ report, Citi has now adapted that wrapper for private markets, with issuance recorded on SIX Digital Exchange (SDX) rails.
Buyers receive a Citi-issued security rather than direct equity. In contrast, special-purpose vehicles and offshore pre-IPO token models often leave investors unsure what they actually own.
Artem Korenyuk, Citi’s global lead for digital assets client solutions, called the receipts a cleaner route.
“This is a very clear alternative model.”
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The first transaction saw Citi wealth clients invest in Kaleido, a tokenization platform backed by Citi Ventures.
Access starts with non-US investors, carrying transaction and maintenance fees, and US availability is planned later.
Meanwhile, the bank says it is in talks with some of the largest private companies.
Private Startup Shares Edge Closer to Mainstream Portfolios
The launch extends Citi’s May 2025 partnership with SDX, which made the bank a custodian and tokenization agent for late-stage pre-IPO equities.
Sygnum and SBI Digital Markets distribute those assets to clients in Europe and Asia.
Demand has an obvious driver. Companies such as SpaceX and Anthropic have delayed going public, pushing investors into products like tokenized SpaceX shares.
Citi’s own research has projected an 80-fold rise in tokenization across private markets by 2030.
Bitwise Chief Investment Officer Matt Hougan argued the launch shows investors routing around barriers to going public.
“It’s amazing to see capital markets heal themselves. Regulators and lawyers made being public toxic, so companies started staying private longer. But investors will not be denied forever, and are finding a solution via blockchain,” Hougan stated.
However, commentators including Chad Steingraber noted that access stays confined to wealthy and institutional clients rather than retail.
Citi, JPMorgan, and other US banks are also planning a shared tokenized deposit network for 2027, deepening the same settlement push.
The largest private issuers authorizing their shares for the program will determine if the RWA tokenization debate moves from pilots to scale.
