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Citi and SDX Swiss firm plan to debut tokenization for pre-IPO share markets within Q3

Major financial institution Citi will manage tokenized versions of high-growth company shares on Switzerland's Six Digital Exchange, pushing investments in venture-backed firms.

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Citi to hold and secure tokens representing shares of rapidly expanding business entities on...
Citi to hold and secure tokens representing shares of rapidly expanding business entities on Switzerland's Six Digital Exchange, aiming to boost investments in venture-funded companies.

Citi and SDX Swiss firm plan to debut tokenization for pre-IPO share markets within Q3

Boldly Stepping into the Future: Traditional Banking Meets Blockchain

Get ready for a game-changer in the world of finance! Citigroup has teamed up with Swiss Firm SDX to revolutionize private market investing by tokenizing and custodying shares of late-stage pre-IPO companies. The groundbreaking initiative is set to launch in the third quarter of 2025, making headlines amid surging institutional interest in tokenizing real-life assets.

Citigroup will be responsible for tokenizing and safeguarding companies' shares on SDX's platform, offering the chance for institutional investors to explore the lucrative opportunities within high-growth, venture-backed private companies. Tokenization serves as a solution to streamline liquidity management for early investors and issuers, while providing a more efficient method for tracking company share ownership.

As Marni McManus, Citi's country officer and head of banking for Switzerland, Monaco, and Liechtenstein, stated, "The popularity of tokenizing real-world assets has been on the rise, making this an exciting opportunity for us to bring a new solution to market."

The Swiss regulatory framework and SDX's infrastructure will play an essential role in the success of this venture, allowing Citi to bring a cutting-edge, technology-driven solution to the sometimes cumbersome and paper-driven private markets.

Tokenizing real-world assets has skyrocketed in popularity over the past two years, with the total market capitalization of these assets now standing at $22.1 billion as of the present time - a whopping 245% increase from May 2023. Institutions, like BlackRock with its tokenized asset fund BUIDL, have also jumped on the bandwagon, leading to $2.8 billion in market capitalization as of May 5, according to DeFiLlama data.

RWA tokenization is expected to reach $50 billion in value by the end of this year, as this innovative approach to investing continues to gain traction. As a result, traditional financial giants like Citigroup and JP Morgan have been actively seeking to establish themselves within the Web3 world.

From the Vault:- Last year, Citi and decentralized finance platform AVAX collaborated to simulate private equity fund tokenization using distributed-ledger technology.- JP Morgan and BNY Mellon conducted a tokenization pilot program using Chainlink's cross-chain interoperability protocol in 2023.

Citi's partnership with SDX is a significant move in embracing blockchain technology and integrating it with traditional financial markets, potentially redefining the way pre-IPO shares are managed and accessed by investors worldwide.

Edited by James Rubin

  1. In 2025, Citigroup will lead the charge in tokenizing and safekeeping shares of pre-IPO companies, marking a significant step in the convergence of traditional banking and blockchain technology.
  2. The digital currency landscape is evolving, with Citigroup's foray into tokenizing shares setting a precedent for other financial institutions to follow suit.
  3. The collaboration between Citigroup and SDX signifies a major shift in finance, as they aim to digitalize late-stage private market investments and improve liquidity for both investors and issuers.
  4. The innovative approach of tokenizing real-world assets is at the forefront of the digital asset revolution, with Citigroup and other financial heavyweights like BlackRock embracing this change.
  5. At the helm of this technological transformation is blockchain technology, creating new opportunities for businesses and investors as it intertwines with traditional finance.
  6. Ethereum (ETH) and its underlying blockchain are crucial components of the tokenization process, as they facilitate efficient share ownership tracking and provide a more liquid market for investors.
  7. The crypto and digital asset world is buzzing, with institutions like Citigroup and Citadel Securities signing up for a share in the lucrative digital asset space through initial coin offerings (ICOs).
  8. The growing interest in tokenizing real-world assets has sparked a race among traditional finance players to establish themselves within the Web3 realm, where decentralized finance (defi) and digital currency transactions take place.
  9. Technology pioneer Citigroup, under the guidance of James Rubin, is actively exploring opportunities to tokenize various assets, aiming to create a more interoperable and efficient financial ecosystem by 2024.
  10. The finance industry is witnessing a seismic shift, as digital currencies like Bitcoin (BTC) and the underlying blockchain technology reshape the way businesses operate and assets are traded, with Citigroup at the epicenter of this change.

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