Investment bank Citi is joining forces with Switzerland’s SIX Digital Exchange (SDX) to bring a groundbreaking shift to traditional private markets through the process of tokenization. This partnership was officially announced during the recent Point Zero Forum in Switzerland and is set to leverage SDX’s blockchain-based Central Securities Depositary (CSD) platform. The ambitious initiative aims to tokenize, settle, and safeguard late-stage private shares, thereby enhancing efficiency and access in the private markets sector.
The project, expected to launch in Q3 2025, will open up access to late-stage, pre-initial public offering (IPO) equities for institutional and eligible investors on a global scale. For issuers, this innovative approach promises a compliant and scalable framework to manage liquidity, particularly beneficial for early investors and employees while allowing them to retain control over their capitalization tables. Investors, on the other hand, will enjoy improved access to high-growth, venture-backed companies in a more efficient and transparent manner.
“We are excited to welcome Citi to the SDX platform and together deliver this landmark project in the tokenization of private shares,” said David Newns, head of SDX. This initiative will enable the efficient distribution of shares in prominent international private companies that are anticipated to generate robust interest from investors.
In addition to tokenization, Citi will act as the digital custodian and tokenization agent, providing comprehensive servicing for these tokenized assets. Ryan Marsh, head of innovation at Citi, highlighted the initiative as a response to the increasing demand from clients for access to emerging digital asset ecosystems and investment opportunities. Furthermore, Marni McManus, Citi’s country officer for Switzerland, emphasized that private markets represent a significant and growing opportunity to digitize an industry that remains largely reliant on manual processes and paper-based documentation.
As tokenization garners momentum, Citi is positioning itself among the early adopters, betting on the notion that tokenization could emerge as the next “killer use case” in the cryptocurrency landscape. The push towards tokenizing private equity funds has been affirmed by previous collaborations, including a recent partnership with Ava Labs to complete a proof-of-concept.
This collaboration comes amidst a notable uptick in real-world asset (RWA) tokenization, capturing the attention of major players in both traditional finance and the crypto space. Recent developments, such as BlackRock’s initiative to create a blockchain-based share class for its massive Treasury Trust Fund, and a $3 billion tokenization deal by MultiBank Group in Dubai highlight the growing interest and investment in tokenization. The convergence of clearer regulatory environments, stronger technology, and active participation from substantial market players is propelling the tokenization trend forward.
As this transformative project unfolds, stakeholders across private markets will be closely watching how tokenization could reshape traditional investment frameworks and enhance accessibility for a broader spectrum of investors.
