Tokenization Unleashed: Citi and SDX Revolutionize Private Markets Access

For anyone watching the evolution of finance, the recent announcement from Citi is a major signal. They’re teaming up with Switzerland’s SIX Digital Exchange (SDX) to tackle the traditional world of Private Markets through Tokenization. This move could reshape how investors access opportunities and how companies manage their capital.

Citi and SDX Partner for Private Markets Tokenization

Global investment bank Citi and Switzerland’s SIX Digital Exchange (SDX) are joining forces. Their goal? To modernize traditional Private Markets using Tokenization. Revealed at the Point Zero Forum in Switzerland, this initiative will use the SDX blockchain-based Central Securities Depositary (CSD) platform. The platform will handle tokenizing, settling, and safekeeping assets. It’s expected to launch by Q3 2025. The focus is on late-stage, pre-IPO equities, making them available to institutional and eligible investors globally.

Why Tokenize Private Markets? The Benefits Explained

This project offers clear advantages. For issuers, it provides a compliant way to manage liquidity for early investors and employees, while keeping control over the cap table. For investors, it unlocks access to high-growth, venture-backed companies. This access is designed to be more efficient and transparent than current methods. David Newns, head of SDX, expressed excitement about the partnership, highlighting its potential to enable efficient distribution of shares in mature international private companies.

Citi’s Role in Tokenized Assets

Citi isn’t just a partner; they will provide comprehensive servicing for these Tokenized assets. They will act as the digital custodian and tokenization agent. Ryan Marsh, from Citi, noted that this meets client demand for access to emerging digital asset ecosystems. Marni McManus, Citi’s country officer for Switzerland, emphasized that Private Markets are a growing opportunity, ripe for digitization away from manual, paper-based processes. Citi has been a strong advocate for Tokenization, seeing it as a potential “killer use case” for crypto technology. They launched Citi Token Services in 2023 for cross-border payments and trade finance. In early 2024, Citi also participated in a proof-of-concept with Ava Labs and others to explore Tokenizing private equity funds.

RWA Tokenization Gains Momentum

The Citi and SDX collaboration happens amidst growing interest in Real-World Asset (RWA) Tokenization. Recent weeks saw significant news in this space. BlackRock filed to create a blockchain-based share class for its Treasury Trust Fund. Libre announced plans to Tokenize Telegram debt. MultiBank Group signed a large Tokenization deal in Dubai for real estate. Experts like Eric Piscini point to clearer regulations, stronger technology, and major players entering the space as reasons for this surge in RWA Tokenization.

The partnership between Citi and SDX represents a significant step in bringing efficiency and accessibility to the historically opaque world of Private Markets through Tokenization. As the trend of RWA Tokenization accelerates, initiatives like this pave the way for a more digitized and connected financial future, benefiting both issuers and investors.