Citigroup is launching tokenized shares of private companies for its wealth-management and institutional clients, the bank confirmed. The new platform is already sparking discussions with private firms interested in joining. Citi hopes the model becomes an industry standard.
What the platform offers
The tokenized shares represent ownership stakes in private companies through digital tokens. Citi's wealth-management and institutional clients are the first to get access. The bank is handling the rollout internally, using its existing infrastructure to issue and manage the tokens.
Discussions with private firms
Citigroup is already in talks with multiple private companies about listing their shares on the platform. The bank has not disclosed which firms are involved or how many have signed on. The conversations suggest that Citi is betting on tokenization as a way to make private equity more accessible to its clients.
Industry standard ambitions
By launching this service, Citigroup wants the tokenized share model to become widely adopted across the financial industry. The move positions the bank as an early entrant in the use of blockchain technology for private securities. Rival banks and fintech firms are likely to watch closely, though Citi has not yet said whether it will license the technology or keep it proprietary.
Citi has not announced a specific launch date or named the private firms in talks. The bank's move signals growing interest in applying blockchain technology to traditionally illiquid private company shares.
