Citi launches digital asset solution, Citi Token Services

Rick Steves

“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.”

Read this next

Industry News

SEC charges $15 million Ponzi scheme targeting Mexican-American community

Armando Gutierrez Rosas purportedly intended to invest these funds in U.S. real estate and mining operations in Mexico, assuring investors of monthly returns as high as 10 percent. Instead, Gutierrez operated a Ponzi scheme, diverting investor funds to cover his personal expenses, which notably included the acquisition of a $2.5 million mansion in Texas.

Digital Assets

Chainlink launches cross-chain interoperability protocol on Arbitrum One

Chainlink and Arbitrum join forces to bring the Chainlink Cross-Chain Interoperability Protocol (CCIP) to Arbitrum One, offering Web3 developers a powerful tool to build secure and interconnected applications across blockchains.

Executive Moves

STT appoints Brian Saldeen as Senior Risk & Margin Product Manager

Sterling Trading Tech welcomes Brian Saldeen to spearhead the development of their Risk & Margin offering, bolstering their cutting-edge solutions in the capital markets.

Industry News

Altruist eliminates brokerage account fees for advisors who choose their custody

Altruist, the modern custodian for independent RIAs, takes a bold step by eliminating portfolio accounting software expenses for all Altruist brokerage accounts, potentially saving advisors tens of thousands annually.

Retail FX

Exploring India’s Forex Market Timings With Insights From Experts

Traders Union experts identify the most profitable Forex trading windows for Indians as between 6.00-12.00 GMT and 18.00-0.00 GMT, emphasizing the importance of timing and market conditions in a rapidly evolving Indian financial landscape.

Retail FX UK doubles revenues, profit in 2022

The UK business of multi-licensed online brokerage group has reported its financials for its new fiscal year ending December 31, 2022. The group managed to best most of last year’s performance metrics, having grown its net income, and FY 2022 turned into the best revenue since it was founded.

Digital Assets

Alchemy goes legit in US with Money Transmitter License

Cryptocurrency payment gateway Alchemy Pay has marked a pivotal moment in its global expansion strategy by securing a crucial payment license in the United States. The company has obtained a Money Transmitter License in the state of Arkansas, joining the ranks of crypto giants like Coinbase and Jack Dorsey’s Block.

Digital Assets

eToro crypto business gets CySEC license

eToro has received approval from CySEC to operate as a crypto asset services provider, providing a regulatory stamp for the company’s digital assets and cryptocurrencies business in Cyprus and Europe.

Metaverse Gaming NFT

Industry Leaders DER Touristik Online, Lufthansa Group, and Chain4Travel Host First Web3 & Travel Hackathon

DER Touristik Online, Lufthansa Group, and Chain4Travel join forces to organize the travel industry’s first-ever hackathon centered on web3 technologies, delivering innovative prototypes in less than four days.