Banking Giant Citigroup Launches Private Blockchain to Digitize Client Deposits
Citigroup, a major financial services and banking company, is set to introduce a unique private blockchain for its clients. The product, called Citi Token Services, aims to tokenize client deposits and improve cash management and trade-finance capabilities by facilitating faster transactions.
Shahmir Khaliq, Citigroup’s global head of services, states that the development of Citi Token Services aligns with their goal of providing real-time, next-generation transaction banking services to institutional clients.
The tokenized deposits represent bank claims and can be transferred instantly on the blockchain. Citigroup tested the system with the Federal Reserve Bank of New York and successfully demonstrated that digital dollars can enhance wholesale payments without affecting the legal treatment of deposits.
Advancing Financial Solutions with Collaborative Efforts
Ryan Ruggs, global head of digital assets at Citigroup’s treasury and trade solutions division, emphasizes that the new system will reduce frictions related to cutoff times and gaps in service windows. Additionally, he mentions the Regulated Liability Network as an example of inclusive industry collaboration.
JP Morgan & Chase is reportedly working on similar technologies.
Hot Take: Citigroup Leaps Forward with Tokenization
Citigroup’s introduction of Citi Token Services marks a significant step towards transforming client deposits into digital tokens. By leveraging blockchain technology, the company aims to enhance cash management and trade-finance capabilities while streamlining transaction processes. This move demonstrates Citigroup’s commitment to providing cutting-edge solutions for its institutional clients in today’s fast-paced financial landscape.
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