Citigroup Tokenizes Private Equity Securities with Blockchain-Backed Depositary Receipts

Citigroup has made a significant move into the digital asset infrastructure by launching tokenized securities representing shares in private companies. This marks a major step for a global bank to integrate blockchain technology into core operations.

The new structure issues Depositary Receipts (DRs) that represent ownership in shares of private companies, which are then converted into digital tokens. These tokens allow for more efficient transfer, settlement, and fractional ownership compared to traditional private equity structures.

Citigroup's decision to open the infrastructure to other banks is notable, suggesting a shift from proprietary blockchain experiments toward shared industry-wide utility. If adopted broadly, this could reduce fragmentation in the tokenized asset market and accelerate the development of standardized protocols for digital securities.