In a significant move toward the digital transformation of private markets, Citi has announced a strategic partnership with SIX Digital Exchange (SDX) to tokenize late-stage pre-IPO equity. The initiative, unveiled at the Point Zero Forum in Switzerland, will enable the digitization of shares for private companies, bringing liquidity to traditionally illiquid assets.
The joint offering is set to launch in the third quarter of 2025, aiming to revolutionize how pre-IPO shares are managed, traded, and accessed. Citi will function as both a digital custodian and tokenization agent on SDX’s regulated digital Central Securities Depository (CSD) platform.
Key Objectives and Potential Impact:
- For Issuers: The initiative offers a compliant framework to streamline cap table management, provide liquidity for early investors and employees, and facilitate efficient capital raises.
- For Investors: Institutional and eligible investors will gain access to late-stage, venture-backed private companies—previously out of reach due to high entry barriers and complex processes.
David Newns, Head of SDX, underscored the strategic value of the initiative:
“This partnership leverages our regulated blockchain infrastructure to enable efficient access to high-quality private assets, aligning with strong investor demand.”
Meanwhile, Marni McManus, Citi’s Country Officer for Switzerland, highlighted the regulatory advantage:
“Swiss regulations provide the foundation to digitize traditionally paper-heavy processes, creating a more scalable and secure investment landscape.”
A Larger Push Toward Digital Securities
The tokenization of pre-IPO shares is part of a broader push by Citi to align with the evolving digital asset ecosystem. Ryan Marsh, Citi’s Head of Innovation & Strategic Partnerships, emphasized that the initiative not only modernizes private markets but also positions Citi as a leader in the burgeoning world of tokenized assets.
“Tokenization isn’t just about assets — it’s about building the infrastructure for a digital-first economy,” Marsh noted.
As tokenization continues to gain traction, Sygnum and SBI Digital Markets are also joining forces to extend access to tokenized pre-IPO equities, targeting clients across Europe and Asia.
In an interview with CryptoNews, Dea Markova, Policy Director at Fireblocks, stated that the future could see a “world of tokenized everything”, extending beyond finance to sectors like supply chains, gaming, and intellectual property.
The Citi-SDX partnership could become a defining moment in the digitization of private markets, with implications for how capital is raised, managed, and accessed globally.
