Citigroup is launching a blockchain-based marketplace for trading shares in unlisted companies.

Cointelegraph reported on June 11 that Citi plans to introduce a platform based on tokenised depositary receipts, targeting institutional investors and high net worth individuals looking to invest in companies before they list.

The tokenised depositary receipts issued by Citi represent ownership stakes in unlisted companies. The service will be offered first to non-U.S. investors, and U.S. investors will be able to use it later.

Citi aims to let investors manage stakes in private companies alongside their existing stock holdings through the platform. Artem Korenyuk (아르템 코레뉴크), a Citi executive in charge of digital assets, explained that investors can place private-company investments next to Apple shares.

Citi said it sees the structure as a more transparent alternative to special purpose vehicles. SPVs have been widely used for investing in private companies, but have been criticised as opaque.

SIX Digital Exchange, a subsidiary of SIX Group, which operates the Swiss stock exchange, will handle the blockchain infrastructure for the platform. Citi is discussing plans to offer shares of several large private companies and its own shares on the platform.