Citi and SDX Join Forces to Tokenize Private Markets
In a move that could reshape the landscape of traditional finance, investment banking giant Citi and Switzerland’s SIX Digital Exchange (SDX) are teaming up to modernize private markets through tokenization. Announced during the Point Zero Forum in Switzerland, the initiative leverages SDX’s blockchain-based Central Securities Depositary (CSD) platform to streamline the tokenization, settlement, and safekeeping of assets.
The platform, slated for launch in the third quarter of 2025, will open doors for institutional and eligible investors worldwide to access late-stage, pre-initial public offering (IPO) equities. Issuers stand to benefit from a compliant and scalable framework for managing liquidity, especially for early investors and employees, while maintaining cap table control. Investors gain 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 will enable the efficient distribution of shares in mature international private companies, which are expected to generate strong investor interest.”
Citi’s Continued Push into Digital Assets
Citi has been a vocal proponent of tokenization, highlighting its potential to revolutionize the financial industry. The bank has taken significant steps to solidify its presence in the digital asset space. In September 2023, Citigroup introduced Citi Token Services, a private, permissioned blockchain designed to offer cross-border payments, liquidity, and automated trade finance solutions to institutional clients. Earlier this year, Citi partnered with Ava Labs, other traditional financial institutions, and digital asset companies to complete a proof-of-concept for tokenizing private equity funds.
Citi will provide end-to-end servicing for the tokenized assets as the digital custodian and tokenization agent. “We are meeting client demand for access to emerging and relevant digital asset ecosystems and investments,” said Ryan Marsh, head of innovation at Citi.
Riding the Wave of Real-World Asset Tokenization
Citi and SDX’s new initiative arrives amid a renewed surge of interest in real-world asset (RWA) tokenization, with major players from both traditional finance and crypto making headlines in recent weeks. This surge, fueled by regulatory clarity, maturing technology, and the willingness of major players to embrace tokenization, signals a significant shift towards the digitization of traditional assets.
The partnership between Citi and SDX underscores the increasing convergence of traditional finance and the world of digital assets. As institutional investors continue to seek opportunities for growth and efficiency, tokenization offers a powerful solution to modernize traditional markets and unlock new avenues for investment.
