Citigroup (C) has introduced Citi Token Services, a blockchain and smart contract-based platform designed for institutional clients in the areas of cash management and trade finance. The service integrates tokenized deposits and smart contracts into Citi's global network, enhancing its core cash management and trade finance capabilities. According to Shahmir Khaliq, Citigroup's Global Head of Services, digital asset technologies have the potential to enhance the regulated financial system by applying innovative technologies to existing legal instruments and established regulatory frameworks.
Citigroup Launches Citi Token Services to Enhance Cash Management and Trade Finance
Citigroup (NYSE: C) has unveiled Citi Token Services, a new blockchain and smart contract-based platform geared toward institutional clients in the fields of cash management and trade finance. This service leverages blockchain and smart contract technologies to offer digital asset solutions to institutional customers. Citi Token Services will seamlessly integrate tokenized deposits and smart contracts into Citi's global network, enhancing its fundamental cash management and trade finance capabilities.
Shahmir Khaliq, Global Head of Services at Citigroup, expressed the potential of digital asset technologies to enhance the existing regulated financial system. He emphasized that these technologies can apply innovative solutions to established legal instruments and regulatory frameworks.
Citigroup previously established a digital assets unit within its wealth management division in June 2021. This unit was created to assist clients in investing in various digital assets, including cryptocurrencies, stablecoins, non-fungible tokens (NFTs), and central bank digital currencies (CBDCs). A few months later, Citigroup reportedly sought to hire 100 individuals for its new cryptocurrency team. In May of the same year, Citigroup participated in a funding round for Talos, a global firm specializing in institutional digital asset trading technology.
Ryan Rugg, Global Head of Digital Assets at Citi Treasury and Trade Solutions, highlighted that Citi Token Services offers corporate treasurers a valuable tool for managing global liquidity in a just-in-time and programmable manner. He added that this platform will reduce frictions related to cut-off times and service windows, enhancing efficiency for institutional clients.
Khaliq further commented that the development of Citi Token Services aligns with their commitment to delivering real-time, always-on, next-generation transaction banking services to institutional clients. He noted that this development complements their work on the Regulated Liability Network, which aims to create interoperable digital asset solutions across multiple banks.
(Kevin Helms, Bitcoin News, 2023)