Citi launches blockchain‑based Digital Depositary Receipts for private startup shares

Citigroup has introduced Digital Depositary Receipts (DDRs), a blockchain‑recorded security that lets institutional and high‑net‑worth investors gain exposure to private‑startup equity without owning the shares directly. The DDRs are issued and custodied by Citi and settled on a regulated blockchain operated by the SIX Digital Exchange in Switzerland. Investors receive a receipt that represents rights to the underlying private‑company assets, with Citi handling issuance and custody.

The first DDR transaction involved tokenisation firm Kaleido. Citi says the product will improve liquidity, shorten holding periods and broaden access to private‑company stakes that have traditionally been difficult for wealthy individuals and institutions to obtain. The launch follows a broader move by major banks into tokenised assets, including a joint U.S. lender initiative to build a shared tokenised‑deposit network slated for mid‑2027 and market forecasts of a $4 trillion tokenised securities market by 2030. Competitors such as Robinhood and Republic already offer tokenised private‑company shares, underscoring a growing demand for alternative exposure ahead of delayed IPOs.