Citi and SIX Digital Exchange Partner to Tokenize Pre-IPO Shares Market
Banking giant Citi and SIX Digital Exchange (SDX) are collaborating to tokenize non-publicly traded shares, targeting a $75 billion market characterized by manual processes. Key points include:
- Citi will serve as custodian and issuer agent for tokenized pre-IPO equities on SDX's blockchain-based Central Securities Depository.
- The platform is set to launch in Q3 2023 and will not include U.S. investors, focusing initially on Switzerland, Singapore, and parts of Asia.
- Private equity investments face liquidity challenges due to lengthy transaction times and cumbersome documentation processes.
- SDX’s blockchain depository uses R3's Corda technology, allowing seamless integration into investors' bank accounts.
- Collaboration includes digital asset banks Sygnum and SBI Digital Markets for access to pre-IPO equities.
This initiative aims to enhance efficiency and accessibility in private markets, addressing existing infrastructural shortcomings.