Citigroup Launches Digital Depositary Receipts with Kaleido on SIX Digital Exchange
C•Citigroup launched Digital Depositary Receipts on SIX Digital Exchange rails, giving institutional investors exposure to tokenized private startup shares via bank-issued securities, starting with Kaleido. Its open system supports other banks’ adoption and U.S. availability is planned after the Kaleido deal, potentially boosting C’s fee income and digital-assets standing.
1. Launch of Digital Depositary Receipts
Citigroup has introduced Digital Depositary Receipts, a blockchain-based product that issues and safekeeps bank-issued securities representing private startup shares on regulated SIX Digital Exchange rails. The design mirrors traditional depositary receipts but adapts the wrapper for private markets, offering a clearer ownership structure than SPVs or offshore tokens.
2. Initial Kaleido Transaction and Rollout Plans
The first transaction saw Citi wealth clients invest in Kaleido’s tokenization platform, with transaction and maintenance fees applied. Access is currently limited to non-U.S. investors, with U.S. availability slated for later, and the bank is in active talks with several large private companies to expand the program.
3. Strategic and Competitive Implications
Citi crafted the system for interoperability, inviting other Wall Street banks to adopt the framework and potentially shaping private-market trading standards. This launch extends Citi’s custodian and tokenization role from its May 2025 partnership with SIX, reinforcing its leadership in digital-asset services and fee-based revenue growth.
4. Industry Trends and Growth Projection
Demand for tokenized private shares has grown as top firms like SpaceX delay IPOs, prompting investors toward alternative access methods. Citi projects an 80-fold increase in private-market tokenization by 2030, and U.S. banks plan to launch a shared tokenized deposit network by 2027, underscoring broader industry momentum.
