Citi and the Swiss digital asset exchange SIX Digital Exchange (SDX) launched a joint initiative aimed at creating infrastructure for the tokenization of private market assets.
Financial giant Citi and SDX, a subsidiary of the Swiss stock exchange specializing in digital assets, announced a strategic partnership with the goal of transforming private markets through tokenization technology. The project is intended to provide access to new investment opportunities for global issuers and institutional investors.
Private market assets are investment instruments not traded on public exchanges, such as venture capital, private debt, private equity funds, and real estate. They’re typically available only to institutional or qualified investors and are characterized by low liquidity and a longer-term investment horizon.
The parties agreed to test and jointly develop a digital infrastructure that will enable the issuance, trading, and management of tokenized assets in a regulated environment. Citi will integrate SDX’s capabilities into its global Citi Securities Services platform, while SDX will provide the technological foundation for the project. Thanks to SDX’s license from the Swiss Financial Market Supervisory Authority (FINMA), a regulated infrastructure for digital securities will be established.
According to Ryan Marsh, Head of Innovation and Strategic Partnerships at Citi, tokenization of private assets could fundamentally change market structure, as the technology will increase the liquidity of private capital, speed up settlements, reduce costs, and improve ownership transparency. David Newns, Head of SDX, noted that tokenization will enable the creation of personalized financial products tailored to the specific needs of institutional investors.
The world’s largest TradFi conglomerates plan to expand their range of crypto-related services in the near future amid strong client demand. For example, Citi is participating in several international initiatives aimed at developing tokenized currency and securities solutions. The financial giant is also actively exploring DLT systems, developing the Citi Token Services blockchain platform for institutional clients and testing the tokenization of private equity funds on the Avalanche network.
Author: Ana Bustos GarcÃa
