Citi launches digital asset solution, Citi Token Services
“Digital asset technologies have the potential to upgrade the regulated financial system by applying new technologies to existing legal instruments and well-established regulatory frameworks.”
Citi Treasury and Trade Solutions (TTS) has introduced Citi Token Services, an initiative that harnesses blockchain and smart contract technologies.
This new digital asset solution is poised to redefine cash management and trade finance for institutional clients, delivering 24/7 programmable financial services.
Cross-border payments, liquidity, and automated trade finance
Citi Token Services offers institutional clients the capability to access cross-border payments, liquidity, and automated trade finance solutions seamlessly and continuously.
Shahmir Khaliq, Global Head of Services, said, “Digital asset technologies have the potential to upgrade the regulated financial system by applying new technologies to existing legal instruments and well-established regulatory frameworks. The development of Citi Token Services is part of our journey to deliver real-time, always-on, next generation transaction banking services to our institutional clients. This development goes hand-in-hand with our industry leading work on the Regulated Liability Network to create interoperable digital asset solutions on a multi-bank basis.”
Citi employs private/permissioned blockchain technology that it owns and manages. Clients are not required to host a blockchain node to access these services, ensuring a seamless and user-friendly experience.
These innovations enhance Citi’s offerings across various sectors, including digital money, trade, securities, custody, asset servicing, and collateral mobility.
This initiative aligns with Citi’s pioneering work on the Regulated Liability Network, which aims to create interoperable digital asset solutions on a multi-bank basis.
Citi Token Services for Trade Finance
Citi’s collaboration with Maersk, a global shipping leader, and a canal authority led to the digitization of a solution akin to traditional bank guarantees and letters of credit in trade finance. The pilot program showcased programmable transfers of tokenized deposits, facilitating instant payments to service providers through smart contracts.
Marie-Laure Martin, Regional Treasury Manager for the Americas at Maersk, said, “We are pleased to have collaborated with Citi in the successful test pilots for the guarantee solution using digitized tokens and smart contracts. The innovative solution has promising applications for trade finance.”
Citi Token Services for Cash Management
Citi Token Services extends its transformative capabilities to global cash management. Clients can now transfer liquidity between Citi branches round the clock, ensuring seamless liquidity management.
Ryan Rugg, Global Head of Digital Assets at Citi Treasury and Trade Solutions, said: “Citi Token Services provides corporate treasurers with a new tool to manage global liquidity on a just-in-time, programmable basis. Frictions related to cut off times and gaps in the service window will be reduced. Our solutions within the Citi network are complemented by inclusive and open industry collaboration on initiatives like the Regulated Liability Network. We are excited about both the potential for shared ledger technology to update Citi services, and the broader financial system in partnership with regulators and industry peers.”