Citi Develops New Digital Asset Capabilities for Institutional Clients
- Citi Treasury and Trade Solutions (TTS) introduces Citi Token Services, leveraging blockchain and smart contracts for institutional clients.
- The services offer round-the-clock financial solutions, including cross-border payments, liquidity management, and automated trade finance.
- Shahmir Khaliq, Global Head of Services at Citi, highlights the potential of digital assets to upgrade the financial system.
- Citi’s collaboration with Maersk and canal authorities demonstrates the efficiency of tokenization and smart contracts in trade finance.
- The services also streamline global cash management, enabling real-time liquidity transfers between Citi branches and ensuring compliance and accessibility without the need for clients to host blockchain nodes.
In a significant move towards embracing the future of finance, Citi Treasury and Trade Solutions (TTS) has unveiled its groundbreaking Citi Token Services.
These services leverage blockchain and smart contract technologies to usher in a new era of digital asset solutions for institutional clients.
Always-On Financial Services
Institutional clients often require financial services that are not only efficient but also available round the clock.
With Citi Token Services, this vision becomes a reality. These services provide cross-border payments, liquidity management, and automated trade finance solutions 24/7.
“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.” Shahmir Khaliq, Global Head of Services of Citi.
This initiative aligns with Citi’s commitment to delivering real-time, next-generation transaction banking services to institutional clients.
It’s worth noting that Citi has been at the forefront of developing the Regulated Liability Network, aimed at creating interoperable digital asset solutions across multiple banks.
Trade Finance Revolutionized
Citi has already demonstrated the power of tokenization and smart contracts in the realm of trade finance.
Collaborating with Maersk and a canal authority, they digitized a solution that serves the same purpose as traditional bank guarantees and letters of credit.
Marie-Laure Martin, Regional Treasury Manager for the Americas at Maersk, expressed her satisfaction with the solution, highlighting its potential for trade finance.
The technology employed in the pilot project has streamlined the trade finance process, enabling instant payments and drastically reducing transaction processing times.
What used to take days can now be completed in minutes.
Efficient Cash Management
Citi Token Services extends its transformative capabilities to global cash management.
Clients can now seamlessly transfer liquidity between Citi branches, ensuring they have access to the funds they need when they need them.
Ryan Rugg, Global Head of Digital Assets at Citi Treasury and Trade Solutions, emphasizes the efficiency of these services.
They enable corporate treasurers to manage global liquidity in real-time, eliminating the constraints imposed by cut-off times and service windows.
“We are excited about both the potential for shared ledger technology to update Citi services and the broader financial system in partnership with regulators and industry peers,” said Ryan Rugg.
Compliance and Accessibility
These services are built on a private/permissioned blockchain owned and managed by Citi.
Importantly, clients are not required to host a blockchain node to access these services, ensuring ease of adoption.
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