Citi Treasury and Trade Solutions (TTS) has unveiled a development in the world of financial services with the launch of Citi Token Services. Leveraging cutting-edge blockchain and smart contract technologies, this service is poised to deliver digital asset solutions for institutional clients, upgrading core cash management and trade finance capabilities.
Citi Launches Innovative Citi Token Services for Institutional Clients
Citi Token Services comes as a response to the growing demand among institutional clients for "always-on" programmable financial solutions. This innovative offering will provide institutional clients with a suite of features, including cross-border payments, enhanced liquidity management, and automated trade finance solutions, all available around the clock, 24/7.
Citi has already showcased the power of Citi Token Services by collaborating with industry leaders such as Maersk and a canal authority to digitize trade finance solutions.
Citi demonstrated how tokenized deposits and smart contracts can be used to replicate the functions of traditional bank guarantees and letters of credit. This programmable approach allowed instant payments to service providers, indicating a pattern shift in trade finance.
The technology used in this pilot introduces a digital process for both buyers and sellers, offering instant payment capabilities that are expected to reduce transaction processing times from days to mere minutes, reforming the entire trade finance ecosystem.
Transforming Global Cash Management
Beyond trade finance, Citi Token Services has been applied to a global cash management pilot. This implementation empowers clients to seamlessly transfer liquidity between Citi branches on a 24/7 basis, eliminating limitations related to cut-off times and service windows.
Ryan Rugg, the Global Head of Digital Assets at Citi Treasury and Trade Solutions said: “Citi Token Services provides corporate treasurers with a new tool to manage global liquidity on a just-in-time, programmable basis. Frictions related to cut off times and gaps in the service window will be reduced.”
“Our solutions within the Citi network are complemented by inclusive and open industry collaboration on initiatives like the Regulated Liability Network. 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.”
To ensure seamless accessibility and security, Citi employs private/permissioned blockchain technology, owned and managed by the bank itself. Clients will not be required to host blockchain nodes to benefit from these services, making adoption straightforward and hassle-free.
Global Reach and Integration: Citi TTS Empowers Diverse Organizations
Citi Treasury and Trade Solutions (TTS) remain at the forefront of digitally enabled treasury, trade, and liquidity management solutions. With a proprietary network spanning over 90 countries, coupled with globally integrated technology platforms, TTS continues to empower multinational corporations, financial institutions, and public sector organizations with tailored, cutting-edge cash management and trade finance services.
Citi Token Services represents a significant leap forward in the financial industry, promising to reshape the way institutional clients manage their finances and conduct trade. As the adoption of blockchain and smart contract technologies gains momentum, Citi drives the evolution of financial services into the digital age.
