Key Takeaways
- • Citi launches market-first Digital Depositary Receipts on private shares, establishing itself as both issuer and custodian for tokenized private equity access—a structural advantage that reduces intermediaries and associated complexity compared to third-party SPV models.
- • The platform leverages blockchain infrastructure operated by SIX, a fully regulated digital central securities depository, enabling institutional-grade tokenization and settlement of private company shares with transparent fee structures.
- • The solution directly addresses liquidity constraints in private markets by offering private companies an alternative capital access route as IPO timelines extend, while providing investors direct and transparent equity exposure without navigating fragmented secondary markets.
- • Citi's model builds on its established Depositary Receipts and Custody businesses, combining regulatory credibility with digital asset capabilities to scale private market participation beyond traditional venture capital and private equity fund structures.
- • The platform initially covers four assets and signals material expansion of Citi's digital asset capabilities, with potential to deepen institutional investor participation in historically illiquid private equity segments.
Summary
Citigroup has launched Digital Depositary Receipts on private shares, positioning itself as the first global financial services company to both issue and serve as custodian for tokenized depositary receipts representing private company equity. The platform, announced on June 12, 2026, addresses a structural gap in private capital markets where extended IPO timelines and fragmented secondary markets have constrained liquidity and transparency for both issuers and investors.
The offering leverages blockchain infrastructure operated by SIX, one of the world's first fully regulated digital central securities depositories, to tokenize private shares while maintaining institutional-grade custody and settlement standards. By serving dual roles as issuer and custodian, Citi reduces the complexity and opacity inherent in traditional structures using third-party Special Purpose Vehicles (SPVs), which often obscure fees and involve multiple intermediaries. This unified model provides a cost-effective, digitally native alternative for private companies seeking capital access outside traditional venture and private equity fund channels.
The solution builds on Citi's existing Depositary Receipts and Custody businesses, applying proven institutional infrastructure to the private markets segment. The platform initially covers four assets and enables transparent, direct equity exposure for institutional investors while offering private companies flexible capital sourcing with reduced structural complexity. According to Citi's announcement, the model addresses a historically illiquid capital markets segment by delivering an efficient alternative to existing fragmented approaches.
The launch represents material expansion of Citi's digital asset capabilities and marks a strategic positioning within the growing tokenization ecosystem. By combining regulatory compliance with blockchain infrastructure, the platform enables institutional investors to access private company equity with the transparency and institutional governance typically reserved for public markets, potentially broadening participation in private markets beyond traditional alternative asset managers and family offices.
The offering leverages blockchain infrastructure operated by SIX, one of the world's first fully regulated digital central securities depositories, to tokenize private shares while maintaining institutional-grade custody and settlement standards. By serving dual roles as issuer and custodian, Citi reduces the complexity and opacity inherent in traditional structures using third-party Special Purpose Vehicles (SPVs), which often obscure fees and involve multiple intermediaries. This unified model provides a cost-effective, digitally native alternative for private companies seeking capital access outside traditional venture and private equity fund channels.
The solution builds on Citi's existing Depositary Receipts and Custody businesses, applying proven institutional infrastructure to the private markets segment. The platform initially covers four assets and enables transparent, direct equity exposure for institutional investors while offering private companies flexible capital sourcing with reduced structural complexity. According to Citi's announcement, the model addresses a historically illiquid capital markets segment by delivering an efficient alternative to existing fragmented approaches.
The launch represents material expansion of Citi's digital asset capabilities and marks a strategic positioning within the growing tokenization ecosystem. By combining regulatory compliance with blockchain infrastructure, the platform enables institutional investors to access private company equity with the transparency and institutional governance typically reserved for public markets, potentially broadening participation in private markets beyond traditional alternative asset managers and family offices.
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