Citigroup Launches Tokenized Shares for Private Companies on Blockchain

Citigroup (C) has announced the launch of a new service enabling its wealthy and institutional clients to trade shares of private companies via blockchain technology, aiming to broaden access to private investments as the pace of initial public offerings slows.

The Product — Tokenized Shares on Blockchain

The new service involves issuing "tokenized shares" representing stakes in private companies, traded on a blockchain network. Citigroup hopes other Wall Street banks will adopt the platform, potentially creating a new standard for private share trading.

Pricing and Availability

The service is currently available to Citigroup's wealthy and institutional clients. The bank has not disclosed pricing or fee details yet but confirmed it is in discussions with some of the largest private companies to participate.

Competition

This move comes amid a boom in private markets, with companies like SpaceX and Anthropic delaying their IPOs. Citigroup competes with other banks such as Goldman Sachs and Morgan Stanley in offering innovative private investment solutions.

Potential Impact on the Company

If successful, the initiative could open a new revenue stream for Citigroup from trading fees and advisory services, while strengthening its position as a financial innovation leader. However, its success depends on adoption by other banks and private companies.