Citi Introduces Digital Deposit Certificates to Expand Access to Private Markets

Citi has unveiled its new Digital Deposit Certificates linked to shares of private companies, becoming the first global financial institution to issue and custody this type of tokenized investment instrument.

The new offering is designed to give private companies an alternative way to raise capital without going through an initial public offering (IPO). As IPO timelines continue to lengthen and secondary private markets remain fragmented and costly, the solution aims to simplify access for both issuers and institutional investors.

The certificates are built on the blockchain infrastructure developed by SIX, one of the world’s first fully regulated digital central securities depositories. Unlike traditional Special Purpose Vehicle (SPV) structures that often involve multiple intermediaries, Citi serves as both the issuer and custodian, creating a more streamlined investment process.

The first transaction was completed in collaboration with Kaleido, a digital asset tokenization platform within Citi’s investment portfolio. The launch involved clients from Citi Wealth, supported by the bank’s Secondary Private Markets team.

For private companies, the structure provides access to institutional capital while allowing founders and existing shareholders to retain voting rights and maintain greater control over their capitalization tables. Investors, meanwhile, gain exposure through a familiar deposit certificate structure commonly used in traditional capital markets.

The initiative brought together five of Citi’s business units—including Issuer Services, Custody, Wealth, Markets, and Ventures—under its One Citi strategy, highlighting the bank’s broader push toward digital financial innovation.

Looking ahead, Citi plans to expand the solution across additional market infrastructures, including both traditional financial systems and multiple blockchain networks, as demand for tokenized financial assets continues to grow.