Citi has announced plans to tokenize traditional private markets through a partnership with the SIX Digital Exchange, as revealed at the Point Zero Forum in Switzerland.
The initiative targets inefficiencies in private equity markets by presenting institutional and eligible investors digital access to equities of firms in their pre-IPO stage.
The firms seek to deliver a solution that simplifies asset servicing while expanding access to high-growth, venture-backed private companies through SDX’s blockchain-based infrastructure. The offering is expected to launch by Q3 2025.
New Asset Servicing Model
Importantly, under the partnership, Citi will assume responsibilities for tokenizing, settling, and safeguarding assets on SDX’s digital Central Securities Depositary (CSD) platform.
Notably, by integrating with SDX’s regulated blockchain network, Citi intends to streamline the process for issuing and managing shares in mature private firms. This marks a change from current manual processes toward a digital servicing model for private market assets.
As part of the model, Citi plans to enable improved liquidity options for early investors and employees while maintaining compliance with existing cap table requirements. Meanwhile, SDX will provide the regulatory infrastructure required to support institutional-grade digital securities distribution.
Citi’s country officer for Switzerland, Monaco, and Liechtenstein, Marni McManus, said the Swiss regulatory environment and SDX’s platform allow the firm to address persistent challenges in private markets.
Tokenized Equities Global Expansion
In parallel, global institutions Sygnum and SBI Digital Markets will help extend the reach of the tokenized equities. Sygnum will facilitate access to investors in Europe, while SBI Digital Markets will serve clients in Asia.
This expansion looks to create a more globally connected digital asset ecosystem centered on SDX’s regulated infrastructure. Citi’s digital assets team noted that client demand is driving the need for end-to-end servicing of tokenized instruments.
Ryan Marsh, Citi’s Head of Innovation and Strategic Partnerships, stated that the firm will act as both digital custodian and tokenization agent on the SDX platform.
Institutional Demand Reinforces Tokenization
Interestingly, Citi’s recent activities follow a longer-term forecast on asset tokenization published in its March 2023 “Money, Tokens and Games” report.
In that document, the firm’s analysts projected that tokenized digital securities can hit a value of $4 trillion to $5 trillion by 2030. That estimate represents an approximately 80-fold increase over current levels of tokenized real-world assets.
Meanwhile, another financial behemoth, Goldman Sachs, is also expanding its presence in the digital asset sector. During TOKEN2049 in Dubai, Goldman’s Head of Digital Assets, Mathew McDermott, confirmed the firm is deepening efforts in crypto lending and tokenized products. These developments point to increasing institutional engagement in blockchain-based solutions that serve private markets.
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