Citigroup has entered the tokenized private equity arena. On June 12, the Wall Street giant unveiled a new product called Digital Depositary Receipts (DDR), allowing high-net-worth individuals and institutional investors to buy and sell tokenized shares of private companies through blockchain-based securities. The move opens the door to once-inaccessible unicorn investments for a select clientele.
Depositary Receipts on a Blockchain
The DDR structure borrows from traditional depositary receipts—a bank-issued security representing underlying shares. For private companies, Citigroup issues and custodies the digital securities, recording them on a blockchain operated by Swiss market infrastructure provider SIX. Investors hold DDRs, not direct equity, while Citi acts as both issuer and custodian. Compared to traditional private market investments requiring special purpose vehicles and multiple intermediaries, DDRs streamline the process and improve transparency.
First Trade with Kaleido
Citigroup executed the first DDR trade for shares of Kaleido, a digital asset and tokenization technology firm backed by Citi Ventures and top clients from Citi's wealth management division. A Citi spokesperson stated the bank aims to “expand client access to digital asset markets in a responsible and compliant way.”
Part of a Broader Tokenization Push
Citigroup's move reflects a growing trend among traditional banks to tokenize real-world assets. The industry expects tokenization to slash settlement times, cut costs, and enable 24/7 global trading. Earlier this month, Citi joined a coalition of major U.S. banks to build a shared tokenized deposit network via The Clearing House, targeting a 2027 rollout. Currently, DDRs live on SIX's closed blockchain, but Citi plans to support public blockchains in the future to broaden access.