- Partnership targets $75 billion private equity market.
- Aims to increase liquidity for pre-IPO equity.
- To leverage blockchain for efficient access.
Citi and SIX Digital Exchange (SDX) plan to launch tokenized private market access in Switzerland by Q3 2025.
This initiative aims to modernize private markets, enhancing access and liquidity. Stakeholders are keenly observing its impact on traditional financing methods.
Citi and SDX are partnering to offer tokenized access to private markets. Ryan Marsh oversees Citi’s role, emphasizing efficient access to private shares. This partnership targets the $75 billion private equity market, which remains illiquid.
The focus is on tokenizing late-stage pre-IPO equities, allowing enhanced liquidity and control for early backers and employees. David Newns of SDX highlights leveraging regulated blockchain technology to facilitate this process.
“Our collaboration with SDX will enable us to offer end-to-end servicing for tokenized assets across our global investor base.” — Ryan Marsh, Head of Innovation & Strategic Partnerships, Citi
The partnership’s implications are substantial, potentially reshaping pre-IPO equity dynamics.
It also extends to modifying cap tables and democratizing access to venture-backed companies. Stakeholders are observing the regulatory landscape, especially with Switzerland’s regulatory clarity.
The involvement of entities like Sygnum in Europe underscores the global interest in this initiative. As markets evolve, this could pioneer modernized financing methods.
Marni McManus emphasizes the efficiency gains in replacing paper-heavy processes with blockchain systems.
This collaboration could pave the way for broader blockchain acceptance in financial systems. While the specific cryptocurrencies affected aren’t detailed, the movement towards tokenized assets signals a financial technological shift.
