Citigroup Launches Digital Depositary Receipts for Private Company Shares With Kaleido

Citigroup launched Digital Depositary Receipts, a blockchain-based product that lets wealthy and institutional investors gain exposure to private company shares through securities issued and held by Citi.

“Tokenized Depositary Receipts Put Private Shares On The Same Rail As Public Stocks The venture works through tokenized depositary receipts, securities that let investors buy stakes in private companies and hold them within the same account as public equities, The Wall Street Journal reported on Thursday”

Benzinga

CoinDesk said the securities are recorded on blockchain infrastructure operated by Swiss operator SIX, with Citi acting as both issuer and custodian for the depositary receipts.

Benzinga

The launch debuted with a transaction involving Kaleido, described by CoinDesk as a digital asset and tokenization company backed by Citi Ventures and investors in Citi's wealth management business.

Markets Media said the model uses tokenized depositary receipts to provide a flexible, institutional-grade alternative for private markets and that it went live with an inaugural transaction between Kaleido and a Citi portfolio company and investors within its Wealth business.

Citi positioned Digital Depositary Receipts as a simpler alternative to special-purpose vehicles, which it said can be difficult to understand and involve multiple intermediaries.

CoinDesk quoted a Citi spokesperson saying, "Our focus with Digital Depositary Receipts is to continue to expand responsible access to digital asset markets," as the bank adapted depositary receipts for private companies.

CoinDesk

Benzinga, citing the Wall Street Journal, said the venture works through tokenized depositary receipts that let investors buy stakes in private companies and hold them within the same account as public equities.

Benzinga also quoted Citi’s global lead for digital assets, Artem Korenyuk, saying, "This lets clients put private-company shares essentially right next to their Apple stock," while adding that Citi described SPVs as unclear about what investors are actually buying.

CoinDesk said Citi plans to expand the offering over time, including to public blockchains, as banks develop shared tokenized deposit networks.

“OpenAI's warning to investors on buying tokenized shares”

Cointelegraph

CoinDesk also noted that earlier this month Citi joined several of the largest U.S. banks in announcing plans to develop a shared tokenized deposit network through The Clearing House by mid-2027.

Markets Media said the blockchain infrastructure is operated by SIX, described as "one of the world’s first fully regulated digital central securities depositories," and that Citi serves as a custodian on the platform responsible for settlement and safekeeping.

Ledger Insights said Citi tokenizes private stock starting with Kaleido and that the tokens represent depositary receipts issued in collaboration with the private company, with Citi acting as both issuer and custodian.