Citigroup Develops Blockchain-Based Model for Trading Private Company Shares

Citigroup is developing a way for retail and institutional clients to trade private company shares using blockchain technology and hopes other Wall Street banks will adopt the approach. According to Foresight News, The Wall Street Journal reported that the bank is in talks with several large private companies about participating in the initiative. The project would operate through depositary receipts, a type of security that allows investors to buy shares in foreign companies. Citigroup said the securities involved would be authorized and tokenized. Under the plan, Citigroup would issue the securities and serve as their custodian.