Citi and SDX Bet Big on Tokenized Pre-IPO Shares—Wall Street’s Paper Pushers Sweating Yet?

Banking giant Citi and Swiss digital exchange SDX are rolling out tokenized pre-IPO shares by Q3 2025—finally dragging private markets kicking and screaming into the blockchain era.

Why it matters: Private capital’s been hiding behind paperwork and exclusivity for decades. Tokenization cuts the red tape, lets smaller players in, and—let’s be honest—gives banks a shiny new revenue stream to offset their dying IPO departments.

The bottom line: If this works, expect every VC’s illiquid startup stake to hit the blockchain faster than you can say ‘regulatory hurdle.’ Just don’t ask about the tax implications.

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.