Citigroup Launches Citi Token Services for Cross-Border Payments and Trade Finance, JPMorgan Explores Deposit Tokens
Summary:
Citigroup has launched Citi Token Services, a private blockchain platform for institutional clients, offering cross-border payments and automated trade finance solutions. The service integrates tokenized deposits and smart contracts, streamlining transactions and eliminating the need for bank guarantees and letters of credit. It has undergone successful pilots, including instant payments via smart contracts and liquidity transfers between Citi branches. JPMorgan is also exploring deposit tokens.
Citigroup has introduced its own blockchain called Citi Token Services, offering institutional clients cross-border payments and automated trade finance solutions. By integrating tokenized deposits and smart contracts into its global network, Citi aims to streamline transaction processing and eliminate the need for traditional bank guarantees and letters of credit. The service has undergone two successful pilots, one of which involved making instant payments to service providers via smart contracts in collaboration with Danish shipping company Maersk and an unnamed canal authority. Another pilot enabled clients to transfer liquidity between Citi branches 24/7, minimizing disruptions caused by cut off times and service window gaps. Citi's new service is built upon the Regulated Liability Network (RLN) technology, which places assets and liabilities on the same ledger for atomic settlement. JPMorgan is also reportedly exploring the use of deposit tokens, following their participation in the Monetary Authority of Singapore's Project Guardian.
Published At
9/18/2023 7:00:00 PM
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