Citigroup has introduced Citi Token Services, a private, permissioned blockchain that offers cross-border payments, liquidity and automated trade finance solutions to institutional clients. The new services “will integrate tokenized deposits and smart contracts into Citi’s global network,” according to a statement.
Citi Treasury and Trade Solutions (TTS), which has banking licenses in over 90 countries, has completed two pilots of the service. It worked with Danish shipping company Maersk and an unnamed canal authority on a program that made instant payments to service providers via smart contracts, reducing transaction processing times from days to minutes. The service replaces bank guarantees and letters of credit, the statement said.
A second pilot enabled clients to transfer liquidity between Citi branches around the clock, reducing “frictions related to cut off times and gaps in the service window,” TTS global head of digital assets Ryan Rugg said. He continued:
Regulated Liability Network (RLN) technology was introduced in November 2022. Citi was among the large financial institutions that participated in a proof-of-concept headed by the Federal Reserve Bank of New York that concluded in July.
Related: Distributed ledger tech could save TradFi $100B a year — Lobby group
RLN infrastructure places assets and liabilities on the same ledger to provide atomic settlement. It is one of a few “unified ledger” proposals that have emerged in recent months. The new Citi service uses deposit tokens, which are tokenized commercial bank money.
In light of the Citi Token Services announcement, don't forget they're building a separate protocol to sidestep #Bitcoin, called Regulated Liability Network. From the RLN website:Read more on cointelegraph.com