Citi issued Digital Depositary Receipts on SIX blockchain infrastructure, giving wealthy clients tokenized access to private company shares. The debut deal involved Kaleido.
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Citigroup launched a product Thursday that lets wealthy and institutional clients buy stakes in private companies through blockchain-based securities. The bank calls them Digital Depositary Receipts.
The structure adapts a familiar instrument. A depositary receipt gives investors exposure to shares through a bank-issued security without holding the underlying stock directly. Citi applies that model to private markets, issuing the receipts on blockchain infrastructure run by Swiss market operator SIX. The bank acts as both issuer and custodian.
The debut transaction involved Kaleido, a digital asset and tokenization company backed by Citi Ventures and investors in Citi's wealth management business. “Our focus with Digital Depositary Receipts is to continue to expand responsible access to digital asset markets,” a Citi spokesperson told CoinDesk.
The launch comes as more fast-growing companies delay public listings, leaving investors with fewer direct ways to access private firms. Demand for private-market exposure has climbed. Citi argued the approach could simplify private-market investing compared with existing structures that rely on special-purpose vehicles and multiple intermediaries.
Citi is not alone in pushing assets onto blockchain rails. Earlier this month, the bank joined several large U.S. banks in planning a shared tokenized deposit network through The Clearing House by mid-2027. That system would convert bank deposits into blockchain-based tokens while keeping funds inside the regulated banking system.
For now, the private-share product runs on SIX infrastructure. Citi said it plans to expand the offering and eventually support public blockchain networks, which could widen the pool of investors and institutions that can participate.
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