Technology
Citi Explores Private Fund Tokenization in Blockchain Bet
- Citi has tested out the concept of tokenizing private markets
- Bank teamed up with Wellington, WisdomTree to run a simulation
A Citibank branch in San Francisco.
Photographer: David Paul Morris/BloombergThis article is for subscribers only.
Citigroup Inc. has carried out a simulation which shows how a private equity fund can be tokenized on a blockchain network, potentially paving the way for greater adoption of distributed ledger technology on Wall Street.
The bank worked with Wellington Management and WisdomTree to carry out its ‘proof of concept’, according to a Wednesday statement. The project showed it’s possible to issue and custody tokenized versions of private equity funds on behalf of clients in a controlled environment, while remaining compatible with existing bank systems, Citi said.