Citi launches blockchain-based Digital Depositary Receipts…

Citigroup has unveiled Digital Depositary Receipts, a blockchain-based product that gives wealthy and institutional investors exposure to private company shares through bank-issued securities. The debut transaction involved Kaleido, a digital asset and tokenization company backed by Citi Ventures, with the securities recorded on infrastructure operated by Swiss market operator SIX.

Why it matters

The launch addresses a structural gap in capital markets: fast-growing companies are staying private longer, leaving investors with limited access to high-demand equity. Traditional routes — special-purpose vehicles and multi-intermediary structures — are cumbersome and opaque. By adapting the depositary receipt model to blockchain rails, Citi argues the product delivers simpler access and greater transparency. The bank acts as both issuer and custodian, meaning investors hold the receipt rather than the underlying shares directly, keeping the structure within familiar regulatory boundaries while adding on-chain settlement.

Market impact

The move is part of a broader institutional wave: Citi recently joined several major U.S. banks in plans to build a shared tokenized deposit network through The Clearing House, targeting a mid-2027 launch. Tokenized real-world assets have already surpassed $30 billion in value, drawing sustained institutional interest. Citi says it plans to expand Digital Depositary Receipts to public blockchains over time, which could significantly widen the investor base and accelerate private-market liquidity — a development that would carry meaningful implications for both traditional finance and on-chain asset infrastructure.