CoinDesk
Citi on Thursday unveiled Digital Depositary Receipts, a blockchain-based product that lets wealthy and institutional investors gain exposure to private company shares through securities issued and held by the bank. The structure adapts the traditional depositary receipt — a bank-issued security that gives investors economic exposure to an underlying share — and records the instruments on blockchain infrastructure operated by Swiss market operator SIX, with Citi acting as both issuer and custodian. The debut transaction involved Kaleido, a digital asset and tokenization company backed by Citi Ventures and the bank's wealth management clients.
Why it matters
The launch lands against a backdrop of fast-growing companies staying private longer, leaving investors with fewer public-market entry points at exactly the moment demand for private-market exposure has surged. By putting the depositary receipt on blockchain rails rather than layering yet another special-purpose vehicle on top, Citi is collapsing the intermediary stack that has historically made private equity expensive and opaque. A Citi spokesperson framed the move as part of the bank's broader push "to expand responsible access to digital asset markets." That phrasing matters: the product is gated to wealthy and institutional clients, not the retail tokenization experiments that have dominated the onchain narrative to date.
Market impact
The instrument is one piece of a wider Wall Street tokenization build-out. Earlier this month Citi joined several of the largest U.S. banks in announcing plans to develop a shared tokenized deposit network through The Clearing House, targeting a mid-2027 launch that would convert traditional bank deposits into blockchain-based tokens while keeping funds inside the regulated banking perimeter. For now, Digital Depositary Receipts settle on SIX's infrastructure, but Citi said the offering will expand to public blockchain networks as the shared deposit rail matures — a sequencing choice that keeps the launch on permissioned plumbing while leaving the door open to broader onchain distribution later.
Frequently asked questions
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What are Citi's Digital Depositary Receipts?
Digital Depositary Receipts are blockchain-based securities issued and held by Citi that give wealthy and institutional investors economic exposure to private company shares, adapting the traditional depositary receipt model and recording the instruments on infrastructure operated by Swiss market operator SIX.
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Which private company was involved in the debut transaction?
The debut transaction involved Kaleido, a digital asset and tokenization company backed by Citi Ventures and investors in Citi's wealth management business.
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What role does Citi play in the new product?
Citi acts as both issuer and custodian of the Digital Depositary Receipts, meaning investors own the depositary receipt rather than the underlying private shares directly.
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How does this connect to Citi's broader tokenization plans?
The product is part of a wider Wall Street push to bring traditional financial assets onchain. Earlier this month, Citi joined several of the largest U.S. banks in announcing plans to develop a shared tokenized deposit network through The Clearing House, targeting a mid-2027 launch.
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Will the product work on public blockchain networks?
Citi said the offering will expand over time and eventually support public blockchain networks, potentially allowing a wider range of investors and institutions to participate, as banks develop shared tokenized deposit networks.
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