Citi has announced a strategic partnership with SDX, a Swiss post-trade group, to tokenize private market assets. This collaboration aims to enhance the efficiency and liquidity of private market transactions by utilizing SDX’s regulated blockchain-based technology. The goal is to create a digital central securities depository platform that will enable the tokenization, settlement, and safekeeping of private market assets, making them more accessible to institutional investors.
Set to go live in the third quarter of 2025, the initiative will focus on tokenizing late-stage pre-IPO equities, which will be made available to institutional investors and other eligible parties. The platform will simplify the distribution of these assets, addressing the liquidity challenges that have traditionally hindered access to private markets. By using blockchain technology, the project offers a more efficient and secure solution than traditional manual and paper-based processes.
Tokenization of private market assets has gained traction in recent years as a way to unlock new opportunities for investors, enabling more efficient trading and settlement of assets that were once illiquid and difficult to access. This partnership between Citi and SDX represents a significant step forward in the modernization of private market infrastructure, offering institutional investors a chance to diversify their portfolios with a broader range of tokenized assets.
Through this collaboration, Citi underscores its commitment to driving innovation in the financial services industry. The tokenization of private market assets promises to reshape the landscape, providing a more digital, automated, and secure way to engage with these markets. As the digital asset ecosystem continues to evolve, this partnership could be a key milestone in the future of private market investment.
