Citi launches tokenized shares of private companies for wealthy investors - Cryptopolitan

Crypto Insight Summary: * Citigroup launched Digital Depositary Receipts, a blockchain-based product that lets wealthy and institutional investors gain exposure to private company shares through securities issued and held by the bank. * The product uses infrastructure from Swiss operator SIX and debuted with a transaction involving tokenization firm Kaleido. * It comes as major banks race to tokenize traditional financial assets and high-profile tech companies continue to delay public listings. The product’s structure is similar to depositary receipts, a decades-old instrument banks use to let investors hold exposure to foreign shares. Citi adapted the model for private markets by letting the bank [issue](https://www.wsj.com/finance/banking/citigroup-is-rolling-out-tokenized-shares-of-private-companies-64cd19ba) a digital receipt recorded on blockchain infrastructure run by SIX, the Swiss market operator. Investors hold the receipt rather than the underlying equity, and Citi serves as both the issuer and custodian. The first transaction using the product involved Kaleido, a tokenization firm backed by Citi Ventures and wealth management investors at the bank. The banking firm has also said it is discussing with some of the world’s largest private companies about participating in the platform [directly](https://finance.yahoo.com/markets/crypto/articles/citigroup-offers-tokenized-shares-private-132100639.html), according to Yahoo Finance. Robinhood Markets (NASDAQ: HOOD) already sells tokenized shares of [OpenAI](https://www.cryptopolitan.com/openai-eyes-10-gw-ohio-ai-data-center/) and SpaceX to its European users, with Republic also offering blockchain-based tokens that track private company equity, Yahoo Finance reported. lenders in a plan to build a shared tokenized deposit network through The Clearing House, targeting a mid-2027 launch. Crypto Insight Analysis: Direction: Bullish GT / Neutral ETH Impact: Minor Impact Horizon: Mid-term (1-8 weeks) Reasoning: Institutional adoption of tokenized assets boosts platform tokens like GT but has limited direct impact on ETH.