- Citigroup, the American multinational investment bank and financial services corporation, has become the latest firm to wade into the blockchain waters as Citi Treasury and Trade Solutions has announced the creation and pilot testing of the Citi Token Services for cash management and trade finance.
The move makes Citi the latest traditional bank to offer “tokenized deposits,” which are transferable digital coins that represent a claim against the bank. The main benefit of tokenized deposits is that they take place on the blockchain, which means settlement is instantaneous. Citi ran a pilot project that utilized blockchain technology to provide buyers and sellers with a digital process for instant payment capabilities in an effort to reduce transaction processing times from days to minutes. “The pilot successfully demonstrated the programmable transfer of tokenized deposits that provided instant payments to service providers via smart contracts,” the release said.
“Citi Token Services provides corporate treasurers with a new tool to manage global liquidity on a just-in-time, programmable basis,” said Ryan Rugg, global head of digital assets at Citi Treasury and Trade Solutions. “Frictions related to cut-off times and gaps in the service window will be reduced.”
TTS has been granted banking licenses in over 90 countries and globally integrated technology platforms, and “continues to lead the way in offering a comprehensive range of digitally enabled treasury, trade, and liquidity management solutions,” Citi said.