Citigroup Unveils Groundbreaking Citi Token Services
Citigroup has announced a significant leap forward with the introduction of its innovative Citi Token Services, marking a new era for cash management and trade finance.
This groundbreaking service harnesses the potential of blockchain and smart contract technologies, aiming to redefine digital asset solutions for institutional clients. This strategic move is poised to revolutionize these specific business domains by seamlessly integrating tokenized deposits and smart contracts into Citigroup’s expansive global network.
In response to the increasing demand for 24/7 programmable financial services, Citi Token Services will offer institutional clients an extensive range of solutions, including cross-border payments, liquidity management, and automated trade finance services.
Notably, a noteworthy achievement of this service has been its successful pilot collaboration with key industry players, including the prominent shipping company Maersk. Together, they have digitalized a solution reminiscent of traditional bank guarantees and letters of credit within the trade finance ecosystem.
The technology showcased in this pilot program streamlines the entire process, ensuring that both buyers and sellers can enjoy instant payment capabilities. This advancement holds the promise of reducing transaction processing times from several days to a matter of minutes.
In addition to its remarkable progress in trade finance, Citi Token Services has also been implemented in a global cash management pilot program. This initiative empowers clients with the ability to seamlessly transfer liquidity between different Citi branches on a 24/7 basis.
Citigroup employs a private, permissioned blockchain technology owned and managed by the institution. This approach ensures that clients can access these cutting-edge services without the need to host their own blockchain nodes.