Citi has launched digital depositary receipts on private shares. The new model, using blockchain infrastructure operated by SIX, now offers issuers flexible capital while providing investors with direct and transparent access to company equity, says the bank in a June 11 (US time) release.
Citi’s model uses tokenised depository receipts to provide flexible, institutional-grade alternative that is capable of meeting the scale needed for private markets. According to the bank, its model also reduces potential for complexity and hidden costs.
As part of its collaboration with SIX, Citi serves as a custodian on the platform.
“As private markets continue to grow, so has the need for diverse and trusted access points. Our digital depositary receipts product is designed to provide superior client service, safeguard assets and facilitate capital markets activity with the same rigour that underpins traditional financial markets,” says Biswarup Chatterjee, head of partnerships and innovation for Citi’s Services business.
“The interoperability of the product will further enable Citi to support a wider range of issuers and investors as digital asset market infrastructure continues to evolve,” he adds.
