Citigroup on June 11, 2026, started rolling out a product that permits rich shoppers and institutional traders to commerce shares of personal firms as tokens on a blockchain, based on The Wall Avenue Journal (WSJ).
The product is initially open solely to non-U.S. traders and operates on SIX’s blockchain infrastructure in Switzerland, whereas Citi acts because the issuer and custodian. This transfer goals to create a extra structured channel into non-public markets, as many main tech firms stay non-public longer and demand for pre-IPO shares continues to rise.
How Citi’s Tokenized Receipts Work
Citi’s new product is constructed on a tokenized depositary receipts construction. These are securities representing pursuits tied to personal firm shares, issued by Citi and recorded as tokens on a blockchain.
Citi additionally serves because the custodian for the underlying property, putting the product nearer to conventional securities infrastructure moderately than an unbiased token traded outdoors the banking system. The product is presently solely open to non-U.S. traders inside Citi’s wealth and institutional consumer segments.
The financial institution will apply transaction and upkeep charges, however has not but introduced the particular payment schedule. The infrastructure presently operates on Switzerland’s SIX blockchain. Citi acknowledged it might increase to different blockchain networks and permit different banks to make use of this infrastructure sooner or later.
Kaleido Marks the First Transaction
The primary transaction on the platform concerned Kaleido, an organization that gives tokenization and digital asset infrastructure for establishments. In line with the WSJ, a Citi wealth consumer invested in Kaleido by the tokenized depositary receipt mannequin.
The number of Kaleido carries its personal significance as the corporate operates within the actual sector Citi seeks to commercialize: bringing non-public property onto monetary institution-controlled blockchain infrastructure. On this transaction, Kaleido serves as each the funding asset and a real-world instance of the kind of market Citi goals to increase.
Nonetheless, Citi has not disclosed the transaction measurement, the variety of taking part traders, or the particular phrases of the receipt.
Why Citi Is Concentrating on Personal Shares
Citi is getting into this house as non-public markets grow to be a bigger part of rich and institutional investor portfolios. Firms like SpaceX, Anthropic, and OpenAI are extremely wanted pre-IPO, however entry is usually constrained by investor {qualifications}, share switch rights, and tight management by the issuing firms themselves.
Beforehand, traders in search of publicity to this asset class usually went by special-purpose automobiles, secondary funds, or bespoke agreements. These constructions might be advanced, closely layered with charges, and it isn’t all the time clear what rights the investor truly holds concerning the underlying shares.
Citi is making an attempt to place its new product as a extra structured different: that includes a significant financial institution appearing as issuer and custodian, receipts representing the property, and transaction data on a blockchain. These elements distinguish the product from conventional non-public share entry channels, which are sometimes fragmented and more durable to trace.
Wall Avenue Strikes Past Pilots
Citi’s product emerges amidst a broader wave on Wall Avenue. Main banks together with JPMorgan, Financial institution of America, Citi, and Wells Fargo are taking part in a plan to construct a tokenized deposits community within the U.S., projected to launch within the first half of 2027. The community, operated by The Clearing Home, goals to help 24/7 funds, real-time liquidity administration, and cross-border transactions.
Within the securities sector, the NYSE, Nasdaq, Securitize, BNY Mellon, and quite a few different monetary establishments are additionally testing or creating infrastructure for tokenized securities. Tokenized money-market funds and tokenized Treasuries are presently the segments with the clearest use circumstances as a result of the underlying property are extra standardized, extremely liquid, and simpler to cost than non-public firm shares.
Whole RWA worth in 2025 chart. Supply: RWA.xyz
In line with RWA.xyz information, greater than $25 billion in real-world property had been introduced on-chain by the top of 2025, although this determine displays the size of tokenization moderately than precise secondary market liquidity.
The Liquidity Query
Citi’s best threat lies not in whether or not it will probably tokenize shares, however in whether or not these tokens might be traded with enough liquidity. Personal shares are inherently troublesome to worth as a result of firms don’t report publicly like listed enterprises. Pricing usually depends on the newest funding spherical, remoted secondary transactions, or inner valuations.
The rights of token holders stay a key level requiring clarification, spanning from voting rights and financial rights to how receipts deal with dividends or switch restrictions. These particulars will decide whether or not the product can scale past its preliminary consumer base.
The participation of the non-public firms themselves can be vital, as many giant startups tightly management their cap tables and secondary buying and selling. With out express approval from the share-issuing firm, traders will discover it troublesome to evaluate whether or not the token is tied to legitimate shares or is merely a product replicating the worth of personal shares.
What Comes Subsequent for Citi
Within the brief time period, Citi’s product stays a managed market take a look at. Key elements to observe embrace what number of extra non-public firms Citi can convey onto the platform, whether or not transaction volumes develop giant sufficient to generate secondary liquidity, and when the product will open to U.S. traders.
Citi holds benefits in its main financial institution model, wealth/institutional consumer community, and custody capabilities. Nonetheless, the product will solely grow to be actually important if the financial institution can onboard high-quality non-public firms to the platform whereas clarifying receipt holder rights and switch circumstances.
This transfer demonstrates that tokenization is advancing deeper into conventional capital markets infrastructure, the place the core challenges contain not simply blockchain know-how, however custody, securities regulation, settlement, and asset possession rights.
