Citi's Blockchain Platform Tries Privacy Over Liquidity

Citi's blockchain-based platform for pre-IPO shares has sparked debate about the trade-off between privacy and liquidity. The platform, which launched in June, allows wealthy clients to trade stakes in private companies without exposing cap tables and positions to the wider market.

Marc Boiron, CEO of Polygon Labs, argues that a closed system can limit the reach of tokenized assets, making it difficult for eligible investors to access them. 'Confidentiality that requires trapping the asset is not really a feature,' he said.

Boiron's criticism highlights the tension between issuance and tradability in tokenized private markets. A report highlighted by Forbes found that $60 billion of tokenized real-world assets (RWAs) have zero weekly transfer activity, with just 62 assets accounting for 88% of the market's value.