Citigroup plans blockchain-based trading of private company shares, expanding investor access to pre-IPO opportunities and tokenized assets.
Citigroup is bringing blockchain technology to private equity markets. The banking giant is developing a platform to enable trading of tokenized shares of private companies for wealthy and institutional investors. The shift follows a trend of rising demand for pre-IPO investments on the global markets.
The Wall Street Journal reported that Citigroup is in talks with some of the world’s biggest private companies to join the platform. The bank hopes the new system will appeal to investors seeking a head start in accessing high-profile companies before they go public.
Why Is Citigroup Tokenizing Private Company Shares?
Numerous private companies are putting off going public. This has led investors to seek new avenues for exposure to these businesses before they go public via an initial public offering (IPO).
Exclusive: Citigroup is seeking to make private firms more accessible to investors, setting up a venture that lets clients trade tokenized shares https://t.co/mh4oufnaeD
— The Wall Street Journal (@WSJ) June 11, 2026
SpaceX and Anthropic have garnered significant investor interest. However, access to these firms is often limited to select investors. As a result, Citigroup sees tokenization as a way to broaden opportunities in the private markets.
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The platform will be tokenized depositary receipts. They are digital securities that are used to represent ownership of shares in private company stocks. Moreover, the assets will be issued and managed on a blockchain network.
Citigroup will be the issuer and custodian of these tokenized assets. This will enable investors to trade digital tokens of private equity in a regulated manner.
How Does Blockchain Improve Private Equity Trading?
The blockchain could streamline and increase transparency in the trading process. It establishes a digital record of ownership that can be securely tracked. This means that transactions can be made more easily than some of the traditional systems.
In addition, tokenization allows fractional ownership. This allows investors to purchase smaller shares of private company stocks. This makes it easier for those who qualify to participate.
The launch is also aligned with Citigroup’s overall digital asset strategy. Earlier this month, JPMorgan, Citi, Bank of America, Wells Fargo and other large U.S. banks endorsed a joint tokenized deposit network. The project is expected to go live in the first half of 2027 and will be available to banks in the United States. It will enable tokenized deposits to be settled instantly, 24/7, via blockchain technology.
Can Tokenized Private Equity Become a Mainstream Investment Market?
Citigroup has also scaled up its Citi Token Services platform. This service already supports cross-border payments and trade finance for multinational companies with blockchain technology.
The Citi Institute’s report, “Tokenization 2030,” estimates that the global tokenized asset market could grow to $5.5 trillion by 2030. The report also estimates that tokenized private equity could represent about $700 billion of that market.
In addition, Citigroup’s latest action is part of a Wall Street trend. Banks and financial institutions are increasingly exploring blockchain solutions for real-world assets.
If the project is a success, then other major banks may offer similar services. Therefore, tokenized private equity could be a significant component of the future financial markets. The development also underscores the growing integration of traditional finance and blockchain technology.
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