Citi Bets on Tokenized Pre-IPO Shares as IPO Market Slows

Citigroup launched a blockchain marketplace June 11 that lets institutional and high-net-worth investors buy tokenized equity in private companies. The first transaction involved Kaleido, an enterprise tokenization firm, and clients from Citi's Wealth division.

Citi said this is the first time a major global bank has simultaneously issued and custodied tokenized depositary receipts linked to private company equity. The receipts, called Digital Depositary Receipts, represent ownership stakes. SIX Digital Exchange, a regulated digital central securities depository tied to Switzerland's SIX Group, runs the underlying blockchain. Citi manages settlement and custody.

Companies are staying private longer. Private equity has outperformed the S&P 500 across five-, 10-, 15-, and 20-year timeframes, according to a December 2025 American Investment Council analysis based on PitchBook data. IPO activity has slowed. The SpaceX offering illustrates demand: retail investors submitted over $70 billion in orders by June 12, Bloomberg reported, as SpaceX targets a $1.8 trillion valuation. Our earlier piece covered the SpaceX tokenized IPO.

Several fintech firms, including Robinhood, have offered tokenized products tied to private companies like OpenAI. Those products typically give indirect economic exposure, not ownership. OpenAI warned investors the tokens do not represent equity. Citi's approach gives direct ownership, though companies retain voting and cap-table control.

The platform initially targets foreign investors. U.S. access is planned for later.

Artem Korenyuk, a digital asset executive at Citi, said the marketplace lets investors hold private company shares “right next to their Apple stock.”

Citi said it is in talks with multiple prominent private companies about listing shares on the platform and is evaluating expansion to other blockchain networks.