Citi issues tokenized depositary receipts for private shares

Citi has launched Digital Depositary Receipts (DDRs) for private company shares and will act as both issuer and custodian. The product went live in an inaugural transaction with tokenization platform Kaleido and investors from Citi’s Wealth business, with support from the bank’s Secondary Private Markets team.

DDRs are digital instruments that represent ownership stakes in private companies. Citi issues the DDRs and holds them in custody, while Kaleido, a Citi portfolio company and institutional tokenization platform, served as the tokenization partner for the first deal.

Citi said the structure is intended to provide a direct and transparent model for accessing private market positions and to make capital formation and secondary activity more efficient.

Biswarup Chatterjee, Head of Partnerships and Innovation for Citi’s Services business, commented: “Digital Depositary Receipts provide trusted access points, protect client assets and help facilitate capital markets activity.”

Dirk Jones, Head of Issuer Services for Citi’s Services business, added: “Our Digital Depositary Receipts are designed to reduce complexity, support efficient capital raising and give issuers and investors a clearer path to private-company investment.”

Citi described the transaction as the first time a global financial services company has both issued and acted as custodian for tokenized depositary receipts representing private company shares. The bank said it will use its issuer services, custody capabilities and Secondary Private Markets platform to support DDRs as they integrate with digital asset infrastructure.