Citi and Switzerland's SIX Digital Exchange (SDX) have announced a partnership aimed at modernizing traditional private markets through tokenization. This initiative, unveiled at the Point Zero Forum in Switzerland, will utilize SDX's blockchain-based Central Securities Depositary platform to tokenize, settle, and safeguard assets, with plans for a launch by the third quarter of 2025. The platform will provide global access to late-stage, pre-IPO equities for institutional investors. For issuers, it presents a compliant and scalable framework to manage liquidity while retaining cap table control, and for investors, it offers efficient access to high-growth, venture-backed companies. Citi will serve as the digital custodian and tokenization agent, fulfilling client demand for digital asset investments. This move highlights the growing confidence in tokenization within the financial sector as various institutions, including BlackRock and Franklin Templeton, also explore similar initiatives. The partnership reflects a significant trend towards digitizing the private markets, which still rely heavily on outdated processes.

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