Citigroup is preparing a blockchain-based platform that will let wealthy and institutional clients trade tokenized exposure to private companies. The service will begin with non-U.S. investors, according to a Wall Street Journal report, and could later expand to U.S. clients if regulations permit.
Depositary receipt structure sits at the core
The product is built around tokenized depositary receipts. These instruments represent exposure to shares in private companies and will be authorized and issued by Citi. The bank will also act as custodian, so clients are not buying private shares directly in the same way they would purchase public equities. They are getting a bank-managed, regulated route into the private market instead.
At launch, the platform is aimed at clients who already meet wealth or institutional eligibility standards. Citi is also reported to be in discussions with large private companies, though no names have been disclosed.
Delayed IPOs are driving demand for late-stage access
The offering arrives as many large private companies stay off public markets for longer. That has left investors searching for ways to access late-stage growth before an IPO. Companies such as SpaceX and Anthropic have drawn strong interest while remaining private, creating an opening for banks and financial platforms to package new forms of access.
In this setup, tokenization converts financial claims into blockchain-based units, with the underlying exposure tied to depositary receipts linked to private-company shares. Citi’s structure may give clients faster settlement and simpler portfolio tracking, while giving the bank tighter control than informal secondary-market transactions.
Wall Street banks keep building tokenized finance rails
Citi has been working toward this market for years. The bank previously ran tokenized deposit pilots and has studied how blockchain could reshape securities, funds, and settlement. In its own research, Citi projected that the tokenized securities market could reach $5.5 trillion by 2030. Its latest forecast put the current tokenized asset market at about $17 billion, with the same base-case path to $5.5 trillion by 2030.
Other major financial firms are moving in the same direction. Reports have said that JPMorgan, Citi, and other large banks are planning a tokenized deposit network that could launch as early as 2027.
Liquidity and approval questions still hang over the sector
Tokenized private shares are still an early market, and key issues remain unresolved. Liquidity, price discovery, issuer approval, and regulatory treatment are all active concerns. Those risks have already surfaced in earlier attempts to offer tokenized exposure to private companies. OpenAI previously said it had not approved or backed some tokenized share products linked to its name.
Based on what has been reported, Citi’s model is designed to address part of that risk through bank issuance, custody, and controlled distribution. The platform is also being offered through regulated client channels rather than a public retail market.