These are exciting times in global finance, as key players continue to explore how to invest in Web3 technology to improve their services. In a bold leap towards the future of finance, Citi Treasury and Trade Solutions (TTS) has introduced Citi Token Services. The innovative offering that utilizes the power of blockchain and smart contract technologies to provide digital asset solutions for Citi’s institutional clients. Let’s take a closer look at 5 key takeaways.
Revolutionizing Finance with Blockchain
Citi Token Services seamlessly integrates blockchain technology and smart contracts into Citi’s global network. This improves core cash management and trade finance capabilities, opening doors to ‘always-on’ programmable financial services.
Transforming Trade Finance
By working with logistics giant Maersk and a canal authority, Citi successfully digitized solutions equivalent to traditional bank guarantees and letters of credit. The result? An innovative pilot project showcasing the transfer of tokenized deposits and instant payments to service providers through smart contracts.
Global Cash Management Empowered
Citi Token Services also extends to global cash management. Clients gain the ability to transfer liquidity between Citi branches round the clock. This empowers corporate treasurers to manage global liquidity on a just-in-time, programmable basis.
Speeding Up Transactions
One of the key benefits that Citi Token Service offers is significantly reduced transaction processing times. The technology deployed provides a completely digital process with instant payment capabilities, which means transactions that previously took days can now be completed in minutes. This level of efficiency benefits both buyers and sellers.
Compliance and Accessibility
Another highlight of the service is its compliance, integration, and seamless accessibility. The blockchain technology in use is private and permissioned. This means it is owned and managed by Citi, and clients don’t need to host a blockchain node to access the service.
The launch of Citi Token Services is one of the recent instances of traditional financial institutions upping their play in the digital assets space. This is testament to the rapidly evolving future of finance, as traditional financial institutions embrace Web3 technology and advancements in AI to increase the efficiency and accessibility of their services.