Citi has opened a regulated blockchain route that lets clients trade tokenized shares of private companies. The initiative, reported by The Wall Street Journal on June 11, gives Wall Street another live test of tokenization — this time outside the crypto-native trading world.
Who gets access first
The tokenized shares are initially available only to foreign wealthy individuals and institutional clients. That means retail investors and US-based clients won't have access yet. Citi is starting small, likely to gauge demand and test the regulatory framework before scaling.
Citi's hope for broader adoption
Citi wants other financial institutions to adopt tokenized private shares too. The bank sees this as a way to modernize private equity — making it easier to trade shares that are normally illiquid. If more banks jump in, a tokenized private share market could take shape outside the usual OTC desks.
A live test beyond crypto trading
Most tokenization experiments have stayed inside crypto exchanges or been niche projects. Citi's move puts a regulated bank — with its own compliance and custody — at the center. That changes the risk profile. The bank isn't just offering a token; it's offering a regulated security that settles on a blockchain it controls.
The timing also matters. Regulators are watching how traditional finance adopts distributed ledger tech. A misstep could slow things down. Citi is betting that a careful, client-restricted rollout will keep regulators comfortable.
What comes next
Citi hasn't set a public deadline for expanding access or adding more companies. The immediate question is whether other big banks — or the private companies themselves — see enough demand to list more tokenized shares on this route. Citi's hope is that they do.
