Key Points:
According to Bloomberg, Citi Token Services is housed within the firm’s Treasury and Trade Solutions division and is primarily aimed at enhancing cash management and trade finance capabilities.
This initiative represents Citigroup‘s contribution to the world of “tokenized deposits,” digital coins that are transferable and represent claims against banks. Crucially, these tokens operate on blockchain technology, ensuring instant settlement.
Citigroup’s offering utilizes a private blockchain owned and managed by the bank, simplifying access for clients who won’t require their digital wallets. Instead, they can seamlessly access the service through the bank’s existing systems.
The primary target of this innovation is streamlining cross-border money transfers, which can sometimes take days due to the complexity of systems used by banks and governments worldwide, as well as differing work hours and holidays.
Citigroup has long been a proponent of blockchain-based tokenization for real-world assets, envisioning a market worth $4 trillion to $5 trillion by 2030. The bank believes that blockchain tokenization offers technological superiority and greater investment opportunities in private markets, potentially superseding legacy financial infrastructure.
Furthermore, Citi Securities Service has joined the BondbloX Bond Exchange (BBX), a DLT-based platform claiming to be the world’s first fractional bond exchange. Citigroup is the first digital custodian to join this exchange, emphasizing its commitment to blockchain-based innovation.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Thai police corruption exposed as officers extort millions in USDT from a Chinese man under…
SafePal Telegram Wallet allows 950 million users to create compliant crypto-friendly Swiss bank accounts, integrating…
Sheetz crypto payments: 750+ US stores now accept Bitcoin, Ethereum, and more, rewarding customers through…
Zhu Su’s wife sells Singapore mansion for $38.5 million amid heightened financial scrutiny on Three…
Bitcoin Spot ETF Outflows Hit $54.9M on Nov 1, marking the first decline in a…
Analysts report that the XRP price and the Cardano price are displaying bearish indicators, while…
This website uses cookies.