Citigroup launches tokenized private-company share platform

Citigroup has launched a blockchain-based platform that lets wealthy and institutional clients buy and sell tokenized shares of private companies. The rollout is open initially only to investors based outside the United States. The bank is in discussions with several large private firms about participating but did not identify them.

The platform creates digital tokens that represent ownership in private firms. Those tokens are tradable on the platform and are designed to provide liquidity and simpler transferability for assets that typically trade infrequently and on negotiated terms.

Citigroup has worked on tokenization for several years. In 2023 the bank estimated tokenized securities could reach as much as $4 trillion by 2030 and ran a pilot converting client deposits into digital tokens on a private blockchain to speed cross-border transfers.

The bank joined a consortium of major banks to build a tokenized deposit network aimed at launching in the first half of 2027 to enable near-continuous settlement for large global clients.

Other financial firms and fintechs have offered tokenized products that track shares in private companies, sometimes with low minimum investments or by minting tokens on public-layer blockchains. Some companies whose shares were tracked indicated they did not authorize or endorse those tokens.

Regulators and companies have raised questions about authorization, investor protections and how tokenized offerings fit within securities laws.

Citigroup said the platform is part of its effort to integrate digital assets and blockchain-based settlement into traditional banking services and to expand trading options for institutional clients.