Citigroup launches digital token service for institutional clients

September 18, 2023 11:23 AM PDT | By Invezz

Real-time transaction banking for clients

Integrating tokenized deposits will see the $1.72 trillion asset manager’s clients benefit from an automated trade finance solution offering 24/7 cross-border payments and liquidity. Citi Token Services is a unit of the investment banking giant’s Treasury and Trade Solutions (TTS) department.

Shahmir Khaliq, Citigroup’s global head of services, said in a statement:

“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.”

Per the press release, Citi Token Services comes after a collaboration between the company, a canal authority and leading ocean-cargo provider Maersk. The idea is to bring faster blockchain-based transactions to the trade finance ecosystem. With the platform, clients will be able to access instant payments, greatly improving on the settlement delays that characterize legacy cross-border transfers.

Citigroup’s latest solution follows the company’s participation in a pilot program that involved the Federal Reserve Bank of New York and several global banks. The proof of concept for the “Regulated Liability Network,” saw major banks roll out tokenized deposits that settled through the central bank.

In June 2022, Citi announced a partnership with Metaco as it bid to develop a digital asset custody solution for institutional clients. In June this year, blockchain company Ripple acquired Metaco for $250 million, prompting Citi to reconsider its collaboration with the custody provider.

The post Citigroup launches digital token service for institutional clients appeared first on Invezz.

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media LLC (Kalkine Media, we or us) and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures/music displayed/used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it, as necessary.