Citigroup Offers Tokenized Shares of Private Companies

Citigroup has launched a new service that tokenizes shares of private companies. With this move, the bank aims to increase liquidity in private markets and provide investors with more flexible access. Tokenization involves creating blockchain-based digital representations of traditional equities. This initiative stands out as part of Citigroup's digital asset strategy. The bank notes that tokenized shares could streamline capital-raising processes for private companies and accelerate secondary market transactions. The service is initially planned to be offered to select clients. Through this technology, Citigroup aims to reduce transaction costs and enhance transparency in private markets. Tokenization could also democratize access to private companies by allowing investors to purchase smaller amounts of shares. The bank emphasizes that it will operate within the regulatory framework and that tokenized shares will be fully compliant with existing laws. Citigroup's move is seen as an example of major banks integrating blockchain technology into traditional financial products. This is not investment advice.