April 19, 2024
CitiGroup Advances Goals of Regulated Liability Network with Citi Token Services
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CitiGroup Advances Goals of Regulated Liability Network with Citi Token Services

To allow institutional customers to engage with digital assets, CitiGroup has created a permissioned blockchain.

The brand-new service, known as Citi Token Services, aims to give customers 24/7 access to tokenized deposits, international payments, and automated trade finance solutions.

Shahmir Khaliq, the head of global services at Citi, said that this development furthers the objectives of the Regulated Liability Network, a whitepaper that was published in November 2022 and expressed the desire to bring the global financial system to a point where on-chain, 24/7 programmable, final settlement in independent currencies is feasible.

“Digital asset technologies have the potential to upgrade the regulated financial system,” Khaliq commented. “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.”

According to a news release, Maersk teamed with Citi Treasury and Trade Solutions (CTTS) for Citi’s digital asset trading service, which would function similarly to “bank guarantees and letters of credit” in conventional financing.

Both businesses said that the trial program could instantly pay service providers using smart contracts, which would be useful for businesses with lots of vendors.

This new product introduction also places a strong emphasis on ensuring liquidity for clients of Premier Banking, which is demonstrated by the incorporation of a cash management pilot.

“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,” CTTS global head of digital assets Ryan Rugg stated.

According to Bloomberg, JPMorgan, the biggest bank in the US by assets, is still in the “early stages” of investigating a comparable private blockchain service, suggesting that Citi has already done this.

In February 2023, JPMorgan initially expressed interest in bank-issued deposit tokens, which are distinct from CBDCs or stablecoins.

Image: Wikimedia Commons

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