What happened?
Citi has partnered with SIX Digital Exchange (SDX) to tokenize companies on a digital exchange. This collaboration aims to address inefficiencies in the private market by making the process more efficient for issuers and investors. The initiative is set to launch a scalable, compliant solution for tokenizing late-stage pre-IPO equity by the third quarter of 2025.
Who does this affect?
This affects both issuers and investors interested in private market assets. Issuers can enhance liquidity for early backers and employees while maintaining control over their cap tables. Eligible investors gain increased access to high-growth, venture-backed private companies that were traditionally hard to reach.
Why does this matter?
The partnership could significantly impact the financial markets by democratizing access to private market opportunities. It combines Citi’s global expertise with SDX’s digital infrastructure, potentially increasing transparency, accessibility, and efficiency in private markets. As tokenization gains traction, this initiative reflects a shift towards digital asset solutions in traditional finance sectors.