Citigroup has announced the creation and piloting of Citi Token Services for cash management and trade finance. “Citi Token Services will integrate tokenized deposits and smart contracts into Citi’s global network, upgrading core cash management and trade finance capabilities,” the financial giant explained.
Citi Launching New Token Services
Citigroup Inc. (NYSE: C) announced on Monday the “creation and piloting of Citi Token Services for cash management and trade finance.” The financial giant’s Treasury and Trade Solutions (TTS) explained:
The service uses blockchain and smart contract technologies to deliver digital asset solutions for institutional clients. Citi Token Services will integrate tokenized deposits and smart contracts into Citi’s global network, upgrading core cash management and trade finance capabilities.
“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,” said Shahmir Khaliq, Citigroup’s Global Head of Services.
Citi set up a digital assets group within its wealth management unit in June 2021 to help clients invest in cryptocurrencies, stablecoins, non-fungible tokens (NFTs), and central bank digital currencies (CBDCs). A few months later, the financial giant reportedly sought to hire 100 people for its new crypto team. In May last year, Citi participated in a funding round for Talos, a global firm that provides institutional digital asset trading technology.
Khaliq further commented on Monday: “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.” The Citi executive added: “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.”
Ryan Rugg, Citi Treasury and Trade Solutions’ global head of Digital Assets, detailed: “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.”
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