Citi Selects Caplight to Power Independent Pricing for New Digital Depositary Receipt Product

Quick Summary

Citi has launched a Digital Depositary Receipt (DDR) product to tokenize private company shares, selecting Caplight to provide independent pricing data. This collaboration brings institutional-grade custody to private markets, utilizing Caplight’s AI-driven MarketPrice™ feed to ensure transparency for venture-backed securities like Kaleido, Inc.

How Does the Digital Depositary Receipt Product Work?

The Digital Depositary Receipt (DDR) represents a significant evolution in how private company shares are handled by major financial institutions. By applying the traditional depositary receipt model to the private sector, Citi is moving away from bilateral paper-based processes toward a modernized, tokenized framework. This allows for institutional-grade custody and settlement, providing a structured environment for eligible investors to gain exposure to high-growth firms.

• Tokenized private securities enable simplified cap table management.
• Companies maintain control over voting rights while expanding investor reach.
• The first issuance represents shares in Kaleido, Inc.

What Role Does Caplight Play in Private Market Transparency?

Caplight provides the independent pricing backbone essential for the DDR program's credibility. Through its MarketPrice™ data feed, Caplight delivers real-time valuations that support transparent fee assessment and custodial reporting. This infrastructure is critical for an asset class that has historically lacked the liquidity and price discovery mechanisms found in public markets.

• Proprietary AI-driven pricing models synthesize market signals.
• Data coverage spans over 100,000 venture-backed companies.
• Integration supports periodic custodial reporting for institutional compliance.

Why is Tokenization Important for Private Equity Investors?

Tokenized private securities address the dual challenges of access and transparency. By digitizing these assets, Citi and Caplight are reducing the friction associated with cross-border access to private equities. This shift allows eligible investors to interact with private markets using the same level of sophistication and data integrity they expect from public equity trading desks.

FF NEWS TAKE:

Citi’s move into Digital Depositary Receipts is a major milestone for private market tokenization. By involving an independent pricing partner like Caplight, they are addressing the valuation gap that has long deterred institutional capital from private secondary markets. This signals a broader market shift where alternative asset classes are increasingly being brought into regulated, transparent, and digital banking infrastructures to meet investor demand for yield.