Citigroup Builds Blockchain Platform for Trading Pre-IPO Company Shares

Citigroup is developing a blockchain-based platform that would allow institutional investors and high-net-worth clients to trade shares in private companies before they go public.

To support the launch, the bank is reportedly in talks with several major private firms about joining the platform. Transactions will be conducted through tokenized depositary receipts issued and managed on a blockchain network, representing ownership stakes in private company shares.

Citigroup will act as both the issuer and custodian of these digital securities, providing the underlying infrastructure for the system. The bank believes the framework could eventually serve as a model for wider adoption across Wall Street.

Source: WSJ