Citigroup Deepens Private Markets Push With Tokenized DDR Launch

In a notable move within the evolving digital assets space, Citigroup Inc. C has launched Digital Depositary Receipts (DDRs) on private company shares. This creates a new avenue for issuers and investors to participate in private markets.The new structure is designed to simplify private market investing by bringing issuance, custody and settlement under a single platform. By serving as both issuer and custodian of the tokenized depositary receipts, C aims to reduce the complexity and costs that are often associated with traditional private market transactions.The company also completed the first transaction on the platform involving Kaleido and investors from its Wealth business. The transaction highlights its efforts to expand private market access while leveraging its wealth management, custody and securities services franchises.Details of C’s Digital Depositary Receipts PlatformThe company's DDRs are tokenized instruments that provide investors with exposure to private company shares through a familiar depositary receipt structure.The offering is designed to help private companies raise capital and provide liquidity opportunities for existing shareholders without pursuing a public listing. At the same time, companies retain control over ownership rights and shareholder records. The structure also provides an institutional-grade alternative to traditional private market arrangements.Built on C's established Depositary Receipts and Custody businesses, the platform uses blockchain infrastructure operated by SIX to issue, settle and safeguard tokenized securities while reducing reliance on multiple intermediaries and special-purpose vehicles commonly used in private market transactions.For wealth clients, the product is integrated into C's existing wealth platforms, allowing access to private company investments through a familiar investment structure while maintaining institutional safeguards and compliance standards.Rationale Behind C’s Latest Tokenized DDR LaunchThe launch reflects growing structural changes in global capital markets, particularly the prolonged timeline for Initial Public Offerings (IPOs) and increasing demand for private market liquidity solutions.Employees and early investors in private companies often have limited options to sell their holdings and access liquidity, forcing them to rely on fragmented secondary markets. Citigroup's DDRs address this gap by offering a more standardized, scalable and regulated framework for accessing private markets.The model also simplifies capital formation and investor distribution without requiring a public listing, allowing companies to raise capital while maintaining control over ownership and governance structures.The latest launch builds on C's broader efforts to expand its digital asset and tokenization capabilities. In 2025, the company partnered with SDX to develop a platform for tokenizing and distributing pre-IPO equities on regulated digital market infrastructure, further expanding its presence in private market tokenization. In 2024, it introduced the Citi Integrated Digital Assets Platform, which supports the issuance, custody and management of tokenized financial instruments.These initiatives, along with the launch of DDRs, reinforce Citigroup's position in the evolving private markets ecosystem while supporting fee-based revenue growth across custody, issuance, settlement and wealth management services.C’s Price Performance & Zacks RankOver the past six months, shares of Citigroup have gained 22.4% compared with the industry’s growth of 1.4%.Image Source: Zacks Investment ResearchCitigroup currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Other Firms’ Efforts to Expand Digital Asset InitiativesMajor financial firms, including Franklin Resources, Inc. BEN and State Street Corporation STT, have also been advancing their digital asset capabilities.Last week, Franklin Templeton, the asset management arm of Franklin Resources, partnered with MoonPay to expand the distribution of its tokenized money market funds. The partnership integrates Franklin Templeton's Benji platform with MoonPay's trading infrastructure, allowing eligible institutions to move between stablecoins and tokenized fund products more efficiently while broadening access to digital investment solutions.In January 2026, State Street launched its Digital Asset Platform, a secure infrastructure designed to support tokenized assets, tokenized money market funds, exchange-traded funds, tokenized deposits and stablecoins. The platform provides wallet management, custody and cash capabilities, enabling institutional clients to access digital asset services through an integrated and compliant framework.Beyond Nvidia: AI's Second Wave Is HereThe AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.See Stocks Now >>This article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks