Citi and SDX have announced a partnership aimed at transforming the private market landscape through the use of blockchain technology. The collaboration was revealed at the Point Zero Forum in Zurich. Both firms plan to offer digital access to pre-IPO equities for institutional and eligible investors, leveraging blockchain to enhance transparency, efficiency, and security in transactions.
This move will use SDX’s blockchain-based Central Securities Depository platform. The platform should be live by the third quarter of 2025. Tokenization, settlement, and custody will be managed by Citi. SDX will supply the regulated infrastructure.
Together, they work to enable investment in mature private firms to be more accessible and efficient. This partnership also offers a more streamlined model for issuers. It enables early investors and employees to have enhanced liquidity management.
Blockchain deal eases private market access
At the same time, it also ensures management of the company’s ownership framework. Citi’s function as a digital custodian and tokenization agent enhances its service capabilities for worldwide clients.
The answer aims to solve a chronic problem in private markets. Paper-based processes and restricted access have hindered innovation and growth. This initiative vows to do the opposite. Investors will have smoother access to venture-backed companies. Issuers will have compliance-ready tools.
Switzerland’s legal system has a crucial role to play in this endeavor. It enables digital securities through transparent regulation. SDX, which holds a license from FINMA, employs distributed ledger technology to provide a secure trading and settlement process. It maintains compliance and confidence in all transactions.
Citi contributes cross-border banking and securities services experience. SDX adds its digital market infrastructure and Swiss regulatory compliance. Together, the two provide a solid base for expansion in tokenized assets.
Global push for blockchain gains momentum
Sygnum and SBI Digital Markets will support the distribution of these shares to clients in Europe and Asia. This expands international access and enhances the bridge between Swiss and global markets.
As tokenization becomes more prevalent, this partnership heralds a new shift. Institutional finance is headed towards digital assets. Although many firms’ legal departments are wary, efforts such as these work towards instilling confidence in the system.
Citi and SDX are not merely exploring blockchain; they’re using it. They’re developing a real product with a release date and market scope. Their move might inspire others to do the same. In the meantime, it reflects a significant advancement in the digital asset landscape.
