Citi Bank Unveils Cutting-Edge Citi Crypto-Token Services Revolutionizing Cash Management and Trade Finance
In a groundbreaking move, Citi Treasury and Trade Solutions (TTS) has announced the launch and initial testing of Citi Blockchain Crypto-Token Services, leveraging blockchain and smart contract technologies to provide institutional clients with innovative digital asset solutions. This transformative service is set to revolutionize core cash management and trade finance capabilities across Citi’s global network.
**Empowering Institutional Clients:**
Addressing the growing demand for ‘always-on’ programmable financial services, Citi Token Services is poised to deliver round-the-clock cross-border payments, liquidity management, and automated trade finance solutions for institutional clients.
Shahmir Khaliq, Global Head of Services at Citi, emphasized, “The integration of digital asset technologies into the regulated financial system has the potential to elevate transaction banking services. Citi Token Services marks a significant milestone in our journey to provide real-time, next-generation solutions to our esteemed institutional clients.”
**Advancing Trade Finance:**
In a collaborative effort with Maersk and a canal authority, Citi successfully digitized a solution mirroring the functionality of bank guarantees and letters of credit in the trade finance domain. This pilot showcased the seamless transfer of tokenized deposits, enabling instantaneous payments to service providers through smart contracts.
Marie-Laure Martin, Regional Treasury Manager for the Americas at Maersk, praised the innovative solution, stating, “The successful pilot for the guarantee solution using digitized tokens and smart contracts is a promising development for trade finance.”
The technology showcased in this pilot introduced an entirely digital process for both buyers and sellers, drastically reducing transaction processing times from days to mere minutes.
**Enhancing Cash Management:**
Citi Token Services has also been deployed in a global cash management pilot, enabling clients to effortlessly transfer liquidity between Citi branches on a 24/7 basis. This revolutionary feature promises to streamline operations, eliminating constraints associated with cutoff times and service availability.
Ryan Rugg, Global Head of Digital Assets at Citi Treasury and Trade Solutions, remarked, “Citi Token Services equips corporate treasurers with a powerful tool to manage global liquidity in a just-in-time, programmable manner. This technology, combined with inclusive industry collaboration, holds immense potential to transform Citi’s services and the broader financial landscape.”
**Compliance and Integration:**
The private and permissioned blockchain technology underpinning Citi Token Services is owned and operated by Citi itself, ensuring clients do not need to host a blockchain node to access the services. This approach guarantees compliance with regulatory standards while delivering a seamless user experience.
Seemingly, Citi remains committed to developing digital asset solutions, aligning with its strategic goals and risk appetite. These cutting-edge solutions, built on a shared technological foundation, bolster Citi’s suite of products and services, spanning digital currency, trade, securities, custody, asset servicing, and collateral mobility.