Imagine being able to invest in a hot, venture-backed company before it goes public — without navigating the traditional, paper-heavy processes that have long defined private markets. That’s exactly what Citi and SIX Digital Exchange (SDX) are planning to offer with their new partnership.
Announced at the Point Zero Forum in Switzerland, the initiative will allow tokenized shares of late-stage private companies to be traded on a regulated digital exchange, scheduled to launch in Q3 2025.
What’s the Big Deal?
For years, investing in private companies before they go public has been the domain of venture capitalists and private equity firms. But with this new model, Citi and SDX are aiming to democratize access to pre-IPO equity, making it easier for institutional investors to gain exposure to these assets.
- For Companies: It’s a way to unlock liquidity for early investors and employees without going public immediately.
- For Investors: It offers access to late-stage private companies, a market segment typically closed off to most investors.
David Newns, Head of SDX, called the initiative a game-changer:
“This project is about creating efficient, regulated pathways to private shares using our blockchain infrastructure. It’s a win-win for both issuers and investors.”
Why Switzerland?
Switzerland’s regulatory environment is a big reason why Citi chose to partner with SDX. Marni McManus, Citi’s Country Officer for Switzerland, said that the Swiss framework allows for a seamless transition from paper-based to digital assets, setting a global precedent.
Meanwhile, Ryan Marsh, Citi’s Head of Innovation, emphasized the strategic importance of tokenization in unlocking new capital markets:
“We’re not just digitizing assets; we’re transforming how capital is raised and traded globally.”
A Glimpse into the Future of Digital Assets
This initiative isn’t just about pre-IPO shares. Dea Markova, Policy Director at Fireblocks, suggested that the move could be a precursor to tokenizing entire asset classes:
“Imagine a world where everything is tokenized — from real estate and supply chains to intellectual property and gaming assets.”
And Citi’s partnership with SDX may only be the beginning. Sygnum and SBI Digital Markets are also joining the effort to extend tokenized assets to clients across Europe and Asia, potentially laying the groundwork for a global network of digital assets.
The bottom line? If Citi and SDX successfully launch this platform, it could redefine how private capital is managed, traded, and accessed, creating a more transparent and accessible market for private shares.
