Tokenizing the Future: Citigroup Joins the Pre-IPO Asset Tokenization Revolution
Citi and SDX Swiss Partner to Introduce Tokenization for Pre-IPO Share Market in Third Quarter
In a groundbreaking move, Citigroup is set to team up with Swiss Firm SDX, heralding the tokenization and custody of shares in late-stage, pre-Initial Public Offering (IPO) companies. The initiative, slated to debut in Q3 2025, comes when institutional interest in tokenizing real-world assets is rapidly escalating.
Citigroup's collaboration with SDX signifies the entry of high-growth, venture-backed private companies into the institutional investment sphere, as these companies will be tokenized and safeguarded on the SDX platform. The move is expected to dramatically enhance private market liquidity by simplifying ownership tracking and management.
"The private markets sector is growing rapidly, and our partnership with SDX promises to digitalize an industry that remains largely manual and paper-driven," commented Marni McManus, Citi’s country officer and head of banking for Switzerland, Monaco, and Liechtenstein.
Embracing the transformative power of technology, this collaboration is a testament to Switzerland’s conducive regulatory framework and SDX's robust infrastructure that is tailor-made for cryptographic securities trading.
Tokenization of real-world assets has gained unprecedented momentum over the past two years. The total market capitalization of real-world assets on chain currently stands at a staggering $22.1 billion, a 245% surge from $6.4 billion in May 2023, as per RWA data provider rwa.xyz. BlackRock's tokenized-asset fund BUIDL, which went live in March 2024, boasts a market cap of $2.8 billion as of May 5, according to DeFiLlama data. Experts predict that RWAs could command a valuation of approximately $50 billion by year's end, signaling a bright future for this burgeoning sector.
As tokenization of real-world assets gathers steam, traditional financial behemoths are increasingly drawn to the Web3 universe. Last year, Citi conducted a private equity fund tokenization simulation in partnership with decentralized finance platform AVAX, while JP Morgan and BNY Mellon disclosed a tokenization pilot program, powered by Chainlink's cross-chain interoperability protocol.
With RWA tokenization poised to reach new heights, trustworthy institutions like Citigroup are poised to capitalize on this opportunity and bring unparalleled innovation to the private market space.
- In Q3 2025, Citigroup, partnering with Swiss Firm SDX, plans to tokenize and custody shares of late-stage, pre-IPO companies, marking their entry into the tokenization of real-world assets.
- This collaboration is expected to boost private market liquidity by streamlining ownership tracking and management through the SDX platform.
- Marni McManus, Citi’s country officer, noted that the partnership signifies the digitalization of a largely manual, paper-driven industry.
- Embracing Switzerland's conducive regulatory framework and SDX's robust infrastructure, this partnership is a testament to the transformative power of technology in the realm of cryptographic securities trading.
- Since the past two years, the tokenization of real-world assets has seen a remarkable surge, with the total market capitalization of RWAs currently standing at $22.1 billion, a 245% increase from May 2023.
- BlackRock's tokenized-asset fund BUIDL, launched in March 2024, has a market cap of $2.8 billion as of May 5, while experts predict RWAs could command a valuation of around $50 billion by year's end.
- Traditional financial giants, including Citi, are increasingly attracted to the Web3 universe, with previous examples being Citi's private equity fund tokenization simulation with AVAX and JP Morgan and BNY Mellon's tokenization pilot program, powered by Chainlink.
- As RWA tokenization continues to grow, institutions like Citigroup are well-positioned to leverage this opportunity and drive innovation in the private market space.
