Citigroup and SDX to Tokenize $750B Pre-IPO Shares
- Citigroup partners with SDX to tokenize pre-IPO shares.
- Modernizes market using blockchain technology.
- Launch scope excludes U.S. initially, focuses on Asia.
Citigroup and Switzerland’s SIX Digital Exchange plan to tokenize private company shares in a $750 billion pre-IPO market partnership launching initially in Switzerland and Asia in Q3 2025.
This initiative marks a major shift, aiming to bring blockchain efficiency to a traditionally paper-heavy market, potentially broadening participation and interest across regions.
Digitizing the Pre-IPO Market
Citigroup and SIX Digital Exchange are collaborating on a pioneering strategy to digitize the $750 billion pre-IPO market by tokenizing private company shares. The process aims to replace outdated manual methods like PDFs and paper with blockchain technology.
Combining Strengths
This partnership combines Citigroup’s global banking capabilities with SDX’s regulated blockchain infrastructure. SDX will offer its Central Securities Depository platform to facilitate the tokenization of late-stage private company equities, enhancing efficiency and accessibility.
“This collaboration represents a significant step towards modernizing the pre-IPO market and improving the efficiency of private equity transactions.” Citigroup
The immediate effect is geared toward increasing market liquidity and efficiency by eliminating slow, manual processes. This modernization effort could attract a wider range of investors, especially in regions with high demand for blockchain assets.
Regulatory Frameworks and Future Prospects
Financial implications are significant, as digitizing shares may make the market more accessible. The platform, initially targeting Swiss and Asian markets, will operate under SDX’s regulatory frameworks, potentially setting a standard for future blockchain technology adoption.
Regulatory frameworks ensure compliance, paving the way for safe, secure transactions using blockchain. This initiative may serve as a model for other financial institutions exploring blockchain integrations in traditional markets. SDX is staking its claim in Asia, aiming to transform regional equity transactions.
