Access to private markets has traditionally been limited by manual processes, fragmented ownership structures and restricted investor participation. As tokenisation gains momentum across financial services, major banks are increasingly exploring ways to digitise private assets and make them more accessible through regulated investment infrastructure.
Citi Expands Tokenisation Strategy Into Private Markets
Citigroup has launched a new platform that enables wealth management and institutional clients to invest in tokenised shares of private companies through SIX Digital Exchange (SDX), the regulated digital asset subsidiary of Switzerland’s SIX Group.
The initiative allows eligible investors to gain exposure to private companies through blockchain-based ownership interests that can be held alongside traditional securities within a single custody account.
The platform has already completed its first transaction involving digital asset firm Kaleido, while Citi is reportedly in discussions with additional private companies to join the ecosystem.
Bringing Digital Infrastructure to Private Equity
The offering builds on a partnership established between Citi and SDX in 2025, under which Citi serves as both custodian and tokenisation agent on SDX’s digital securities infrastructure.
The platform is designed to support investments in late-stage private companies, providing institutional and high-net-worth investors with access to pre-IPO opportunities through a more efficient and transparent ownership model.
Unlike tokenised fund structures launched by alternative asset managers, Citi’s role focuses on providing the infrastructure layer that enables the issuance, custody and servicing of tokenised shares in individual private companies.
Tokenisation Moves Further Into Mainstream Finance
The launch represents another step in Citi‘s broader digital asset strategy, which already includes tokenised payment services and participation in industry initiatives focused on tokenised deposits and digital settlement networks.
As financial institutions seek new growth opportunities in digital assets, private market tokenisation is emerging as one of the most promising use cases. By digitising ownership records and streamlining administration, banks aim to reduce friction in what has historically been a paper-intensive and operationally complex market.
What This Means for the Industry
- Tokenisation is expanding beyond payments and settlement into private capital markets.
- Banks are increasingly positioning themselves as infrastructure providers for digital asset ecosystems.
- Private company investments could become more accessible and operationally efficient through blockchain-based ownership models.
- Institutional investors are gaining new pathways to access pre-IPO and late-stage private market opportunities.
- Traditional custody, servicing and securities functions are being adapted to support digital asset markets.
- Major financial institutions are accelerating efforts to build regulated tokenisation platforms as demand for digital assets grows.
- The convergence of traditional securities infrastructure and blockchain technology is creating new investment distribution models.
