Citi launches blockchain market for private company shares

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Citi blockchain market for shares

Highlights

Citi is launching a blockchain-based market for private company shares using tokenized depositary receipts, initially targeting foreign investors before U.S. rollout.
The platform, operated by SIX Digital Exchange, aims to offer more transparent direct ownership in private companies and is in talks with several large firms for listings.
Rising demand for pre-IPO access is highlighted by over $70 billion in retail investor orders for SpaceX’s offering and private equity outperforming the S&P 500 long-term.

Tokenized platform targets pre-IPO access

As first reported by The Wall Street Journal, Citigroup is building the marketplace around tokenized depositary receipts issued by Citi that represent ownership interests in private companies. The bank plans to offer the product initially to foreign investors, while U.S. access is scheduled for a later stage.

Citi digital asset executive Artem Korenyuk told the Journal the structure is designed to let investors hold private company exposure alongside listed securities in their existing portfolios. Citi argues that tokenized depositary receipts provide a more transparent route into private markets than special-purpose vehicles, which are widely used but can be harder for investors to assess.

The blockchain infrastructure for the venture will be operated by SIX Digital Exchange, a subsidiary of Switzerland's SIX Group. Citi says it is already in discussions with several large private companies about listing their shares on the platform.

Private market demand reshapes investment access

Interest in pre-IPO investing is rising as companies remain private for longer and generate more of their value before reaching public exchanges. That shift is drawing more attention to structures that can widen access to private assets while preserving clearer ownership rights.

Several fintech platforms, including Robinhood, have explored tokenized exposure to private companies such as OpenAI, but those offerings generally provide indirect economic exposure rather than legal ownership of the underlying shares. OpenAI warned investors last year that such tokenized stocks do not represent equity in the company.

Longer-term performance data has added to the appeal of private markets. In a report published last December, the American Investment Council, citing PitchBook data, said private equity outperformed the S&P 500 over five-, 10-, 15- and 20-year investment horizons, even though the index posted stronger returns over shorter periods.

The appetite is also evident in anticipated listings. Bloomberg reports that retail investors alone have placed more than $70 billion in orders for SpaceX's Friday offering as of Thursday, underscoring the intensity of demand for high-profile private and newly public companies.

In our earlier coverage of Goldman Sachs’ role in the upcoming SpaceX offering, we noted that the bank had secured a lead bookrunner position that could bolster fee income and reinforce its influence in marquee private-market transactions. The article also highlighted how strong quarterly results and mixed near-term technical signals shaped sentiment around GS as investors weighed the impact of blockbuster private deals.

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