Citigroup launches blockchain platform for institutional trading of tokenized shares in private, pre-IPO companies.
Tech & Launches ·
Citigroup has launched a blockchain-based platform allowing its wealthy and institutional clients to trade shares in private, pre-IPO companies, according to the Wall Street Journal. The bank is in discussions with several large private enterprises to participate in the offering and expects the framework to be adopted by other Wall Street firms.
The platform uses tokenized depositary receipts—securities representing fractional ownership stakes—that are authorized, minted, and structured on-chain. Citigroup functions as both the foundational issuer and custodian for these on-chain securities, managing the underlying share exposure.
The announcement signals institutional appetite for blockchain-based secondary markets in private equity. What remains unclear is the timeline for broader adoption among peer institutions, the specific enterprises already engaged, and whether regulatory hurdles or technical constraints might affect rollout speed.