Citigroup explores the future of private markets through fund tokenization on Blockchain

As part of an innovative approach to integrating traditional finance with blockchain technologies, Citigroup has taken pioneering steps in exploring the possibilities of tokenization in private markets. To achieve this goal, the company has collaborated with partners such as Wellington and WisdomTree, aiming to develop a concept that will facilitate the issuance and storage of tokenized versions of direct investment funds.

The experiment conducted by Citigroup involved the tokenization of a direct investment fund on the blockchain, which, according to the company, could be key to the widespread adoption of Web3 technologies in the financial world of Wall Street. Bloomberg notes that the model developed by Citigroup offers a simplified process for the adoption of blockchain technologies for financial institutions, compatible with existing banking systems and ensuring operations on behalf of clients in a controlled environment.

This approach opens new prospects for financial institutions in terms of using blockchain technologies, promising more efficient and secure asset management. Puneet Singhvi, head of digital assets for institutional clients at Citigroup, emphasizes that the conglomerate will carefully study the results of the experiment to make an informed decision about the possibility of providing similar services in the future.