citi bank

Citigroup Launches Digital Asset Solutions for Institutional Clients

BY Andrew Rossow

September 19, 2023

Citi Treasury and Trade Solutions (TTS) is piloting a new initiative, Citi Token Services, that will use blockchain and smart contract technologies to deliver digital asset solutions for Citi’s institutional clients – elevating core cash management and trade finance capabilities.

By offering cross-border payments, liquidity, and automated trade finance solutions on a 24/7 basis, Citi Token Services aims to meet the demands from institutional clients who often seek ‘always-on’ programmable financial services.

“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,” said Shahmir Khaliq, Global Head of Services at Citi in the September 18 announcement.

Khaliq also spoke to Citi’s previous collaboration with Maersk, a shipping and logistics company out in Denmark, and a canal authority to digitize a solution comparable to bank guarantees and letters of credit within the trade finance ecosystem. This pilot showcased the programmable transfer of tokenized deposits, enabling instant payments via smart contracts.

Citi Token Services has also been deployed in a global cash management pilot, empowering clients to transfer liquidity between Citi branches around the clock.

Ryan Rugg, Global Head of Digital Assets at Citi Treasury and Trade Solutions, emphasized that Citi Token Services offers corporate treasurers a powerful tool to manage global liquidity on a just-in-time, programmable basis. This approach is expected to reduce friction associated with cut-off times and service gaps.

The private/permissioned blockchain technology underpinning Citi Token Services is owned and managed by Citi, eliminating the need for clients to host a blockchain node to access these services.

Citi’s continued commitment to developing digital asset solutions underscores its ambition to enhance its product and service offerings across various sectors, including digital money, trade, securities, custody, asset servicing, and collateral mobility.

Editor’s note: This article was written by an nft now staff member in collaboration with OpenAI’s GPT-3.5.

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