Citigroup Unveils Citi Token Services: Transforming Digital Asset Transactions

Citi Treasury and Trade Solutions (TTS) has unveiled an innovative offering, Citi Token Services, poised to reshape digital asset solutions for institutional clients in cash management and trade finance. This pioneering service leverages the power of blockchain and smart contract technologies to usher in a new era of financial services.

Citi Token Services is set to revolutionize the landscape by integrating tokenized deposits and smart contracts into Citi’s global network. This transformation enhances core cash management and trade finance capabilities, addressing the evolving needs of institutional clients.

Institutional clients increasingly seek “always-on” and programmable financial services. Citi Token Services is designed to meet this demand by providing round-the-clock cross-border payments, liquidity, and automated trade finance solutions.

Shahmir Khaliq, Global Head of Services at Citi, emphasizes the potential of digital asset technologies to enhance the regulated financial system by applying innovative technologies within established legal and regulatory frameworks. He notes that Citi Token Services is part of their mission to deliver real-time, next-generation transaction banking services to institutional clients. This initiative aligns with their pioneering work on the Regulated Liability Network, aimed at creating interoperable digital asset solutions across multiple banks.

Citi Token Services for Trade has already demonstrated its capabilities through collaborations with Maersk and a canal authority. The pilot project digitized a solution akin to traditional bank guarantees and letters of credit within the trade finance ecosystem. It showcased the programmable transfer of tokenized deposits, enabling instant payments to service providers through smart contracts. Marie-Laure Martin, Regional Treasury Manager for the Americas at Maersk, lauds the innovative solution’s potential applications in trade finance, highlighting its ability to reduce transaction processing times from days to minutes.

Additionally, Citi Token Services has been applied to a global cash management pilot, enabling clients to transfer liquidity between Citi branches on a 24/7 basis. Ryan Rugg, Global Head of Digital Assets at Citi Treasury and Trade Solutions, envisions the service as a valuable tool for corporate treasurers to manage global liquidity efficiently.

Crucially, Citi’s private/permissioned blockchain technology underpins Citi Token Services, ensuring clients do not need to host a blockchain node to access these services.

Citi’s commitment to developing digital asset solutions, aligned with its risk appetite and strategic approach, underscores its dedication to enhancing products and services across various sectors, including digital money, trade, securities, custody, asset servicing, and collateral mobility.

As Citi continues to lead the way in digital innovation, its Treasury and Trade Solutions (TTS) division stands as a testament to its unwavering commitment to delivering integrated, digitally enabled treasury, trade, and liquidity management solutions to clients globally.

About Citi:

Citi, a global leader in wealth management and banking partner for institutions with cross-border needs, operates in nearly 160 countries and jurisdictions. It provides a comprehensive range of financial products and services to corporations, governments, investors, institutions, and individuals worldwide.

Citi’s announcement of Citi Token Services heralds a new era in digital asset solutions, offering transformative possibilities for institutional clients.

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