Citi, SDX Set Q3-2025 Launch for Tokenized Pre-IPO Shares – Is Private Capital About to Go Digital?

Citi announced a new partnership with Switzerland-based SIX Digital Exchange (SDX) on Tuesday to tokenize companies on the digital exchange.

The collaboration, revealed at the Point Zero Forum in Switzerland, seeks to address longstanding inefficiencies in the private market ecosystem for both issuers and investors.

Citi and SDX are teaming up to tokenize late-stage private shares, aiming to bring efficiency and access to the private markets sector pic.twitter.com/S2DCh85e0t

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Under the agreement, Citi will serve as both a digital custodian and tokenization agent on SDX’s regulated digital Central Securities Depository (CSD) platform. Together, the firms are developing a scalable, compliant solution set, scheduled to launch in the third quarter of 2025.

The offering will initially focus on tokenizing late-stage pre-IPO equity, making these otherwise illiquid assets more accessible to institutional and eligible investors across the globe.

For issuers, the initiative provides a compliant and efficient mechanism to enhance liquidity for early backers and employees, while preserving control over their cap tables.

For investors, it marks a step forward in the democratization of access to high-growth, venture-backed private companies—traditionally out of reach due to high barriers to entry and opaque processes.

The partnership will combine Citi’s global securities services expertise and client reach with SDX’s regulatory-grade digital infrastructure. “We are excited to welcome Citi to the SDX platform,” said David Newns, Head of SDX.

“This project stands out by leveraging our regulated blockchain technology to bring efficient access to private shares, meeting strong investor demand for high-quality private assets.”

Tokenization Continues to Gain Traction

Marni McManus, Citi’s Country Officer for Switzerland, emphasized the unique opportunity made possible by Swiss regulation and SDX’s technology: “We’re helping modernize a traditionally manual, paper-heavy industry by offering digitized, scalable solutions to issuers and investors.”

Ryan Marsh, Head of Innovation & Strategic Partnerships for Citi’s Investor Services and Issuer Services, added, “As tokenization gains traction, we’re ensuring our clients can participate in the evolving digital asset landscape.

“Working with SDX supports our broader innovation agenda and reinforces our commitment to unlocking new opportunities.”

World of Tokenized Everything?

In an interview with CryptoNews, Dea Markova, Policy Director at Fireblocks, said, looking ahead, the team is focused on scaling infrastructure to handle the growing diversity of its client base, particularly in payments. However, in the long term, the company is betting big on tokenization beyond finance.

“We’re imagining a world of tokenized everything. We’re already working with Sony in Japan—think supply chains, gaming, non-financial processes.”

This latest initiative with Citi and SDX also supports the broader development of the Swiss digital asset ecosystem. Sygnum and SBI Digital Markets will play a key role by extending access to tokenized pre-IPO equities for clients across Europe and Asia.

As digital assets continue to evolve, the Citi-SDX collaboration marks a major move in making private markets more transparent, accessible, and efficient for global participants.