Citigroup is launching a blockchain-based platform that lets wealthy and institutional clients trade shares of private companies, aiming to draw other Wall Street banks into the venture. The bank is negotiating with major private firms to join, addressing growing demand as companies delay IPOs amid hype around SpaceX and Anthropic debuts.

The system uses tokenized depositary receipts—securities that represent ownership in foreign companies—allowing investors to hold private stakes alongside public equities like Apple stock. Citigroup will issue and custody these securities, initially serving foreign investors before expanding to U.S. clients. Transaction and maintenance fees apply.

This move reflects banks' rush to adopt blockchain technology beyond cryptocurrencies, with Citigroup and JPMorgan Chase planning a tokenized deposit system for next year. Money-market funds have already embraced tokenization, and securities platforms are following suit as private market access becomes increasingly valuable.

The venture could reshape how institutional investors access private markets, potentially creating new revenue streams while the traditional IPO timeline stretches longer. Citigroup's blockchain infrastructure offers a template for competitors seeking similar capabilities.