Citi Unveils Digital Asset Solutions with Blockchain Integration

blockchain.news:

Citi Treasury and Trade Solutions (TTS) has launched its new digital asset service, Citi Token Services, aimed at enhancing cash management and trade finance for institutional clients. This innovative service leverages blockchain and smart contract technologies, integrating tokenized deposits and smart contracts into Citi's expansive global network.

The move comes as institutional clients increasingly seek 'always-on', programmable financial services. Citi Token Services is set to offer cross-border payments, liquidity, and automated trade finance solutions around the clock. Shahmir Khaliq, Global Head of Services at Citi, emphasized the potential of digital asset technologies to «upgrade the regulated financial system» and highlighted the service's alignment with Citi's work on the Regulated Liability Network, aiming for interoperable digital asset solutions across multiple banks.

Trade Finance Digitization with Maersk

In a collaborative effort, Citi partnered with Maersk and a canal authority to digitize solutions traditionally served by bank guarantees and letters of credit in the trade finance domain. The pilot showcased the programmable transfer of tokenized deposits, enabling instant payments to service providers through smart contracts. Marie-Laure Martin, Regional Treasury Manager for the Americas at Maersk, acknowledged the success of the test pilots, noting the «promising applications for trade finance.» The technology is anticipated to cut transaction processing times from days to mere minutes.

Revolutionizing Cash Management

On the cash management front, Citi Token Services has been tested in a global pilot, facilitating clients to transfer liquidity between Citi branches 24/7. Ryan Rugg, Global Head