Citigroup's recent digital depositary receipt marks another step in bringing traditional finance closer to the on-chain world. The liquidity issues in private equity are finally being addressed seriously.

Citi News reports that Citigroup has announced the launch of a new tokenized equity product designed to provide wealthy and institutional investors with a new way to purchase private company shares. The product is called a Digital Deposit Receipt, allowing investors to gain exposure to private company shares through blockchain securities issued and held by Citigroup. This move is part of a broader effort by major banks to bring traditional financial assets into the digital asset ecosystem. Citigroup stated that the goal of the Digital Deposit Receipt is to continue expanding responsible access to the digital asset market. The product was first traded with digital asset and tokenization company Kaleido, and Citigroup plans to expand this product over time and eventually support public blockchain networks to enable more investors and institutions to participate.