Banking giant Citigroup has revealed its foray into the blockchain domain with the introduction of a distinctive private blockchain dedicated to its clientele.
As per a fresh report from Bloomberg, Citigroup has launched “Citi Token Services”, a new offering designed to transform client deposits into a tokenized format.
This initiative primarily aims at bolstering cash management and advancing trade-finance capabilities, which includes expediting transaction processes.
Shahmir Khaliq, Citigroup’s global head of services, commented on the launch, emphasizing:
“Our commitment towards launching Citi Token Services underscores our vision to revolutionize transaction banking services, ensuring they are real-time, continually available, and in sync with next-gen requirements of our institutional client base.”
These “tokenized deposits” symbolize bank obligations and can be effortlessly transferred on the blockchain.
Notably, the Federal Reserve Bank of New York played a pivotal role by partnering with Citigroup in testing this innovative system. This infrastructure empowers banks to craft digital currency for their patrons, which subsequently can be settled using central bank reserves. The trial yielded positive results, signifying that digital dollars have the potential to refine wholesale payment systems without necessitating any modification in the legal framework governing deposits.
Ryan Ruggs, the global head of digital assets for Citigroup’s treasury and trade solutions division, stated:
“Our efforts are geared towards eliminating hurdles associated with transaction cutoff times and service window gaps. The solutions we offer within the Citi framework are further enriched by promoting widespread industry cooperation, as witnessed in projects like the Regulated Liability Network.”
It’s noteworthy that another banking titan, JP Morgan & Chase, is allegedly on a similar path, exploring corresponding technological advancements.
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