Altcoins News
By Dan Saada
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Why Tokenized Depositary Receipts, Why Now. The depositary receipt structure isn't new. It's been used for decades to let investors hold…
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Regulatory Uncertainty Hangs Over the Platform. Specific regulatory frameworks for trading tokenized assets are still under development.
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Citi just launched a blockchain-based marketplace for tokenized depositary receipts tied to private company shares.
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The platform lets investors trade tokenized versions of shares in private companies through depositary receipts recorded on a blockchain.
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The depositary receipt structure isn't new. It's been used for decades to let investors hold foreign company shares domestically without dealing with cross-border settlement…
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And the timing probably isn't accidental. Institutional appetite for tokenized real-world assets has grown sharply over the past couple of years.
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The efficiency argument is real. Private company shares are notoriously illiquid. Secondary markets exist but they're fragmented, slow, and expensive.
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See also: SEC Moves to Kill Two Decades-Old Equity Rules, Crypto Markets Watch Closely
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Specific regulatory frameworks for trading tokenized assets are still under development. That's not a minor footnote — it's probably the single biggest variable here.
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The lack of comprehensive guidelines creates real uncertainty for potential participants. Investors considering using the marketplace need to know what protections apply, how…
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So the marketplace is live, but the full implementation — the version where it's operating at meaningful volume with clear rules — is still contingent on regulatory developments.
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That said, launching now rather than waiting for perfect regulatory clarity is itself a strategic choice.
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Private equity access has always been a two-tier game. Endowments, sovereign wealth funds, and large family offices got in early and cheap.
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Read also: Trad.Fi and W3 Chase $650M Blockchain Test in U.S. Equipment Finance
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Whether other banks follow quickly is probably the more interesting question right now. It's hard to imagine Citi's direct competitors sitting on their hands for long.
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