Citigroup has announced the launch of Citi Token Services. This innovative product allows its institutional clients to instantly convert their deposits into digital tokens using the bank’s private blockchain.
Citigroup Takes a Leap with Citi Token Services
According to the Global Head of Services at Citi in a press release, Shahmir Khaliq, “Digital asset technologies have the potential to upgrade the regulated financial system by applying new technologies to existing legal instruments and well-established regulatory frameworks.” They went ahead to say, “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. This development goes hand-in-hand with our industry leading work on the Regulated Liability Network to create interoperable digital asset solutions on a multi-bank basis.”
This digital solution functions like bank guarantees and letters of credit in the traditional finance ecosystem. By digitizing bank guarantees and other letters of credit, Citi Token Services would expedite transactions. The token will also minimize reliance on third parties, and cut down processing times, all while enhancing security.
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This groundbreaking service uses advanced technology for a fully digitized process of allowing buyers and sellers to make instant payments. This aim is to slash transaction processing times from days to minutes. And by doing that, they can streamline operations, and foster an efficient global finance landscape.
Citigroup’s venture into digital tokens and blockchain has the power to transform global banking. One expert in the field, who requested to remain anonymous, remarked, “This could be a game-changer for the banking industry, not only in terms of how financial transactions are processed but also as an example of how traditional banks can embrace emerging technologies.”
