Citibank Partners with SIX Digital Exchange to Tokenize Private Equity Market

Citibank has partnered with Switzerland's SIX Digital Exchange (SDX) to enhance the $75 billion private equity market through tokenization. This initiative was announced at the Point Zero Forum in Switzerland, where Citibank outlined plans to utilize SDX's blockchain-based Central Securities Depository (CSD) for asset tokenization, settlement, and custody.

Key details include:

Citi will act as custodian and issuer agent for tokenized late-stage pre-IPO equities on the CSD platform.
The platform is expected to launch in Q3 2025, facilitating access to pre-IPO equities for early investors globally.
Nisha Surendran from Citi Ventures highlighted inefficiencies in traditional private equity transactions, noting lengthy settlement processes and reliance on paper documents.

David Newns, CEO of SDX, discussed early challenges faced by Web3 initiatives, emphasizing the need for a balance between innovation and compliance in financial services. The collaboration aligns with a growing trend towards real-world asset (RWA) tokenization.

Citi has expressed strong support for tokenization, viewing it as a potential major use case within the crypto sector. Other financial institutions, such as Goldman Sachs, are also exploring expanded roles in crypto trading and tokenization, contingent on regulatory approvals.