Key Takeaways
- • Citigroup launched Digital Depositary Receipts, a blockchain-based platform enabling wealthy and institutional clients to invest in tokenized shares of private companies, addressing the decline in IPO availability as an alternative capital-raising mechanism.
- • SIX Securities Depository operates the regulated blockchain infrastructure, while Citi functions as custodian responsible for settlement and safekeeping of tokenized shares, establishing a licensed, institutional-grade framework rather than a decentralized model.
- • Citi is actively recruiting other financial institutions to participate in the platform rather than develop competing systems, positioning the service as an industry standard that could consolidate private market infrastructure across multiple banks.
- • The launch reflects a broader institutional pivot toward tokenized assets, with major banks including JPMorgan Chase and Bank of America simultaneously collaborating on tokenized deposit networks, signaling alignment on blockchain infrastructure for financial services.
Summary
Citigroup introduced Digital Depositary Receipts on June 11, 2026, a blockchain-enabled marketplace allowing its wealthy and institutional clients to invest in tokenized shares of private companies. The platform operates on infrastructure managed by SIX Securities Depository, the Swiss national central securities depository, with Citi serving as custodian responsible for settlement and safekeeping of the tokenized securities. This positions the offering within a regulated framework comparable to traditional depository models, rather than an uncontrolled digital asset environment.
The service addresses a structural gap in capital markets: as IPOs have become increasingly rare, private companies face constrained liquidity options for fundraising and shareholder liquidity events. By tokenizing private company shares, Citi enables fractional ownership and blockchain-based trading while maintaining institutional custody standards. The bank is in discussions with major private companies to participate in the platform, with references to firms such as SpaceX and Anthropic illustrating the caliber of potential issuers.
Strategically, Citi has signaled its preference that other financial institutions adopt this shared infrastructure rather than develop proprietary alternatives—a positioning that mirrors industry-wide collaboration on tokenized deposits. JPMorgan Chase, Citi, and Bank of America are concurrently collaborating on a shared, interbank tokenized deposit network operated by The Clearing House, enabling instant transfer of bank deposits as digital tokens on blockchain networks. Smaller institutions including Huntington Bancshares, M&T Bank, and First Horizon are separately exploring tokenized deposit systems via the Cari Network, while Custodia Bank and Vantage Bank have begun issuing tokenized deposits operationally.
The launch reflects institutional conviction that blockchain infrastructure for securities and deposits will standardize across banking, reducing fragmentation and operational inefficiency. By positioning itself as a hub rather than an isolated innovator, Citi aims to establish Digital Depositary Receipts as foundational plumbing for private market access across the financial services industry.
The service addresses a structural gap in capital markets: as IPOs have become increasingly rare, private companies face constrained liquidity options for fundraising and shareholder liquidity events. By tokenizing private company shares, Citi enables fractional ownership and blockchain-based trading while maintaining institutional custody standards. The bank is in discussions with major private companies to participate in the platform, with references to firms such as SpaceX and Anthropic illustrating the caliber of potential issuers.
Strategically, Citi has signaled its preference that other financial institutions adopt this shared infrastructure rather than develop proprietary alternatives—a positioning that mirrors industry-wide collaboration on tokenized deposits. JPMorgan Chase, Citi, and Bank of America are concurrently collaborating on a shared, interbank tokenized deposit network operated by The Clearing House, enabling instant transfer of bank deposits as digital tokens on blockchain networks. Smaller institutions including Huntington Bancshares, M&T Bank, and First Horizon are separately exploring tokenized deposit systems via the Cari Network, while Custodia Bank and Vantage Bank have begun issuing tokenized deposits operationally.
The launch reflects institutional conviction that blockchain infrastructure for securities and deposits will standardize across banking, reducing fragmentation and operational inefficiency. By positioning itself as a hub rather than an isolated innovator, Citi aims to establish Digital Depositary Receipts as foundational plumbing for private market access across the financial services industry.
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