Major international bank Citibank has announced an experiment with tokenized securities on the blockchain to expand the use of distributed ledger technology on Wall Street.

The bank is partnering with Wellington Management and WisdomTree - the ETF's cryptocurrency sponsor - to launch a "proof of concept" program.

The latest test, as reported by Bloomberg, tokenized a hypothetical private investment fund, Wellington, on Avalanche, a smart contract platform whose coin, AVAX, is the 10th largest by market capitalization.

According to Citi, the fund's distribution rules were built into the Wellington fund's main smart contract, defining how tokens are divided among WisdomTree clients.