Citigroup has launched a blockchain-based platform that allows affluent and institutional clients to trade tokenized shares of private companies, with initial access restricted to foreign participants, according to reports released Thursday. The bank is already in discussions with several major private firms to participate, although no names have been disclosed.
Push into private equity tokenization
The platform enables trading through tokenized depositary receipts, aiming to transform traditionally illiquid private equity into digital assets that can be exchanged more easily. The first transaction has already been completed, giving wealth clients exposure to Kaleido, an institutional tokenization platform.
This move comes as high-profile companies like SpaceX and Anthropic continue to delay initial public offerings, increasing demand among traders for earlier access to privately held firms. The extended timeline for public listings has fueled interest in alternative routes to private equity exposure, particularly through blockchain-based instruments.
Expanding blockchain strategy
Citigroup’s latest initiative builds on its broader push into tokenization. In 2023, the bank estimated the tokenized securities market could reach up to $4 trillion by 2030. It also launched a pilot program that converts deposits into digital tokens on a private blockchain to enable faster cross-border payments.
Earlier this year, the bank joined a consortium of major financial institutions working on a tokenized deposit network scheduled to launch in the first half of 2027. The system is designed to provide continuous settlement for global enterprise clients using an embedded token framework.
Rising competition in tokenized equities
Citigroup enters a rapidly evolving space as financial technology firms and brokerages develop similar offerings. Republic announced plans in 2025 to issue blockchain-based tokens tracking shares in companies such as SpaceX, OpenAI, and Anthropic, with minimum entry points as low as $50.
Robinhood also introduced tokenized versions of SpaceX and OpenAI shares for users in Europe via Arbitrum, although OpenAI later said it had not approved the offering. Bernstein analysts described these developments as part of a broader global expansion in equity tokenization.
Market growth accelerates
The market for tokenized real-world assets has grown sharply, reaching $31.4 billion in May 2026, a 180% increase in less than a year. A stablecoin settlement layer exceeding $300 billion now supports the ecosystem, acting as the payment infrastructure for these digital assets.
Bernstein analysts project that total value locked in on-chain real-world assets could climb from about $37 billion in 2025 to roughly $80 billion by the end of 2026. Equity tokenization alone is expected to represent around 16% of that total, up from approximately 2% the previous year.
Focus shifts to liquidity and structure
The introduction of a regulated, bank-backed platform provides a new channel for gaining exposure to private markets. Attention is expected to focus on liquidity, fee structures, and how efficiently these platforms operate compared to existing methods that offer synthetic exposure.
Retail-oriented platforms have already been active in this space. Republic, for instance, has listed more than two dozen “Mirror Tokens” tied to prominent private firms, broadening access to traders with low minimum investment thresholds.
Ipo test looms for tokenized assets
An upcoming test for tokenized equity products may come as SpaceX is reportedly preparing for a public listing in June 2026. The event is expected to show how closely tokenized instruments track real-world valuations and whether their payout structures function as intended during a liquidity event.
Meanwhile, the broader shift toward tokenized finance continues. A consortium of major financial institutions, including Citigroup, is preparing to roll out a tokenized deposit network operated by The Clearing House in 2027, designed to enable round-the-clock settlement and reshape how large-scale transactions are processed globally.
Explore how Wall Street tokenizes assets and access opportunities beyond IPO delays in our guide to tokenized equities.
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