Summary

Citi and SIX Digital Exchange (SDX) are joining forces to tokenize pre-IPO shares, significantly affecting a traditionally inefficient $75 billion market filled with paperwork.

Key Highlights

• The collaboration aims to facilitate late-stage, pre-IPO equity trading for institutional investors through SDX’s regulated blockchain platform.
• Expected to launch by Q3, the platform will initially focus on Switzerland and parts of Asia, excluding U.S. investors.

The Challenge

Citi’s role involves serving as a custodian for these tokenized assets, helping to modernize a market that has long relied on cumbersome manual processes. Nisha Surendran from Citi Ventures highlighted the outdated infrastructure surrounding private markets, which significantly delays transactions.

Statements from Company Leaders

David Newns of SDX noted that despite earlier regulatory hurdles faced by Web3 projects, the regulatory landscape in Switzerland has allowed them to make significant progress. Nadine Teychenne emphasized Citi’s strategic move into the digital asset space with this initiative.

Future Implications

This alliance is part of a broader trend where institutions recognize the need for innovation in asset management. By eliminating paper-based processes, Citi and SDX are paving the way for more efficient trading environments for alternative assets.