Citigroup has launched the pilot of its Citi Token Services, a new platform that uses blockchain and smart contract technologies to provide digital asset solutions for institutional clients. The services are designed to meet the need for ‘always-on’ programmable financial services and will provide cross-border payments, liquidity, and automated trade finance solutions. Citi has been testing its token services with global trade leader Maersk and a canal authority to digitize services similar to bank guarantees and letters of credit within the trade finance ecosystem. This involved the programmable transfer of tokenized deposits, offering immediate payments to service providers via smart contracts. The technology is expected to provide a fully digital process to both buyers and sellers, facilitating instant payments and potentially reducing transaction processing times from days down to mere minutes.Citi Token Services has also been integrated into a global cash management pilot aimed at enabling clients to transfer liquidity between various Citi branches on a 24/7 basis. The blockchain technology used in the service is private and permissioned, meaning that it is owned and managed by Citi. As a result, clients will not be required to host a blockchain node to access these services. Citigroup’s continued development in digital asset solutions aligns with its ambitions to enhance products and services across digital money, trade, securities, custody, asset servicing, and collateral mobility.
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 | North America |
| Countries | |
| Sentiment | positive |
| Relevance Score | 10 |
| People | Marie-Laure Martin, Ryan Rugg |
| Companies | Citigroup, Citi Treasury and Trade Solutions, Canal Authority, Maersk, Central Bank Digital Currencies (CBDCs) |
| Currencies | None |
| Securities | None |
