Switzerland’s investment bank Citi and six digital exchanges (SDX) are teaching to modernize the traditional private market through tokenization.
The initiative, disclosed during the Point Zero Forum in Switzerland, will use the SDX-based Central Securities Depositary (CSD) platform to taste, repair, and safekeeping assets, according to a May 6 announcement.
The platform, which is expected to survive in the third quarter of 2025, will create late-stage, pre-initial public offering (IPO) that are equally accessible to institutional and worthy investors worldwide.
For those who provided, the project offered a following and measured framework to manage liquidity, especially for early investors and employees, while maintaining CAP table control. For investors, it opens access to high growth, venture-supported companies in a better and transparent way.
“We are excited to welcome Citi to the SDX platform and to bring this landmark project to the tokenization of private shares,” said David Newns, head of the SDX.
The Newns added that it would “enable good distribution of shares to mature international private companies, which are expected to produce strong investors.”
Related: Real-world asset tokenization: Unlocking a new financial period
Citi to provide service for tokenized assets
Citi will provide end-to-end delivery for these tokenized assets as a digital custodian and tokenization agent. “We have met the client’s request for accessing the emerging and with the ecosystems of the digital asset and investment,” added Ryan Marsh, head of the Citi change.
Marni McManus, Citi country official for Switzerland, said that private markets represent a major and growing opportunity, helping to digitize an industry that still relies on manual processes and documentation based on paper.
Citi is among the earliest financial institutions to express strong confidence in the future of tokenization, even if this assessment will be Next “Killer Use Case” in Crypto.
In September 2023, Citigroup Introduced Citi token servicesA private, allowed blockchain that offers cross-border payments, liquidity and automatic financial solutions to institutional clients.
In early 2024, Citigroup Working with Ava LabsOther traditional financial institutions and digital asset companies to complete a proof-of-concept for the tokenization of private equity funds.
Related: $ 21b Tokenized RWA Market Doubtful, Institutions Not Interested – Plume CEO
RWA tokenization gets traction
Citi and SDX’s new initiative came in the middle of a modified wave of interest in Real-World Asset tokenization (RWA)The major players included both traditional finances and crypto titles last week.
On April 30, Blackrock Filed to create a blockchain-based shares For the $ 150 billion Treasury Trust fund, which allows a digital glass ledger the investor’s owner. On the same day, Free announced plans to bring up $ 500 million in telegram debt through the new Telegram Bond fund.
The most significant news came from Dubai, where the multibank group Has a $ 3 billion deal in tokenization with UAE real estate firm Mag and blockchain provider Mavryk.
“The recent climb is not justified. This happens because everything is lining up,” Eric Piscini, CEO of Hashgraph, told Cointelegraph:
“The rules are becoming more pronounced in the main markets. The tech is stronger, faster, and ready to measure. And big players really do it – Blackrock is tokenizing funds, Citi explores the digital asset, and Franklin Tempton has tokenized funding market funding in public blockchain money.”
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