Citi names Caplight to price new digital DDR product

Citi selected Caplight to provide independent pricing for a new Digital Depositary Receipt, or DDR, product that tokenizes private-company shares for eligible investors. The first DDR under the program represents shares in Kaleido, Inc. Caplight will supply continuous market valuations through its MarketPrice data feed to support DDR pricing, fee assessment and custodial reporting.

The DDR adapts the depositary receipt concept, traditionally used for foreign public shares, to privately held companies. Under the program, Citi converts private shares into digital tokens that can be held, settled and reported through institutional custody arrangements. Citi says the structure introduces standardized, auditable settlement and reporting to a market that has often used bilateral, paper-based transfers.

Caplight’s MarketPrice feed will deliver continuous, independent pricing for the securities underlying DDR issuances. The firm uses AI-driven models that combine recent transaction data, market signals and company fundamentals across more than 100,000 venture-backed companies. Citi will use those prices for fee calculations and periodic custodial reports tied to DDR holdings.

Caplight’s role is limited to external, data-based valuation; it will not provide custody or issuance services. The DDRs are available only to eligible investors under program terms and will be offered under applicable regulatory and investor eligibility rules.

Javier Avalos, Caplight co-founder and CEO, commented: “We’re proud to provide the independent pricing backbone for one of the most innovative products in private markets.” He added: “Tokenized private securities will allow private companies to maintain control over voting and a more simplified cap table management structure while broadening investor outreach.”

Citi and Caplight stated the combination of institutional custody, tokenization and independent pricing is designed to address limited investor access and a lack of pricing transparency in private markets by providing regular valuations and formal custodial reporting.