Citigroup Inc. has announced the launch of a new pilot program, Citi Token Services, that will allow institutional clients to use blockchain technology and smart contracts for cross-border payments and trade finance transactions. The service will give Citi’s institutional customers access to the bank’s private blockchain network from their existing accounts without needing to create a new digital wallet or operate blockchain nodes. Citi has tested using smart contracts to replace traditional trade finance tools like letters of credit and bank guarantees, which have traditionally been used to secure transactions for both buyers and sellers. Citi’s blockchain pilot comes just months after it participated along with the New York Fed and other banks in a successful test of blockchain-based cross-border payments dubbed the Regulated Liability Network.
Citi Token Services will enable clients to make instant, 24/7 cross-border transfers between Citi branches using blockchain rails. This will reduce frictions related to cut-off times and gaps in the service window. Citi Global Head of Services Shahmir Khaliq said that the development of Citi Token Services is part of the bank’s journey to deliver real-time, always-on, next-generation transaction banking services to its institutional clients. Marie-Laure Martin, Regional Treasury Manager at Maersk, said that the innovative solution has promising applications for trade finance.
Citi serves 200 million customers in more than 160 countries, including public sector organizations, multinational corporations, and financial institutions.
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| Information | Details |
|---|---|
| Geography | Global |
| Countries | |
| Sentiment | positive |
| Relevance Score | 10 |
| People | Marie-Laure Martin, Ryan Rugg, Shahmir Khaliq |
| Companies | Regulated Liability Network, Citigroup Inc., Treasury and Trade Solutions., Maersk, New York Fed |
| Currencies | None |
| Securities | None |
