Citi, in collaboration with T.Rowe Price and Fidelity International, has developed a blockchain solution for foreign exchange (FX) trading as part of Singapore’s Project Guardian. This marks a significant step in integrating blockchain technology into traditional financial systems, with the potential to revolutionize FX trading. The solution utilizes the Avalanche blockchain for streaming FX prices and incorporates smart contracts for trade execution and record-keeping.The collaboration between Citi, T.Rowe Price, and Fidelity International has resulted in a permissioned instance of the Avalanche blockchain. This effort is part of a broader engagement in digital assets and blockchain technology, highlighting the growing trend of traditional financial institutions embracing blockchain. The goal of this initiative is to enhance efficiency and transparency across all stages of the trade lifecycle, from pre-trade to execution.The trial solution developed by Citi introduces a novel approach to FX trading. Spot FX prices for the USD/SGD pair are streamed to the blockchain using an oracle, ensuring privacy and security by making the prices visible only to the trading counterparties. The introduction of smart contracts automates the selection of the best price from a series of firm prices offered by a dealer, with the trade recorded on the blockchain once a price is selected. This automation and record-keeping reduce errors and enhance transaction reliability.Citi’s blockchain activities extend beyond FX solutions. The company has launched the Regulated Liability Network, a platform that combines central and commercial banks in a shared blockchain network focused on tokenized money and assets. Additionally, Citi has unveiled its Citi Token Services, including a tokenized deposit pilot, and has gone live on two smart contract platforms for Chinese securities settlement and syndicated loans. These initiatives demonstrate Citi’s commitment to leveraging blockchain technology across various financial sectors.Citi’s foray into blockchain technology through Project Guardian and its subsequent initiatives marks a turning point in the financial industry. By harnessing the potential of blockchain, Citi aims to streamline existing processes and pave the way for more secure, efficient, and transparent financial transactions. As these technologies continue to evolve, they have the potential to redefine the landscape of global finance, ushering in an era of innovation and enhanced financial services.
This News Article was automatically generated by Bob the Bot (AI)
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | Asia |
| Countries | 🇸🇬 |
| Sentiment | positive |
| Relevance Score | 1 |
| People | Blue Macellari, Shobhit Maini |
| Companies | Monetary Authority of Singapore, Avalanche blockchain, T.Rowe Price, Fidelity International, Citi |
| Currencies | US Dollar, Singapore Dollar |
| Securities | None |
