Citi Tests Asset Tokenization Program
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February 14, 2024 10:12 pm
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Citi, formerly known as Citibank, has successfully tested an asset tokenization pilot program.
The test was conducted alongside WisdomTree and Wellington Management and utilized Avalanche Spruce, an Evergreen subnet deployed on the Avalanche blockchain network.
Aside from basic testing to ensure that assets could be transferred seamlessly, the tests also incorporated collateralized lending—a game changer for liquidity transfers using real-world assets.
If Citi eventually does take all these features live then it could revolutionize finance and take the velocity of money into the stratosphere.
Avalanche announced on Wednesday: “Less than a year ago, Ava Labs launched Avalanche Spruce, an Evergreen Subnet purpose-built for buy- and sell-side institutions to measure the benefits of on-chain finance.
Today marks a major update to these efforts as Citi and DTCC Digital Assets join the network and test the benefits of private market tokenization with key asset managers Wellington Management and WisdomTree. The results are outlined in Citi’s new report.”
Less than a year ago, Ava Labs launched Avalanche Spruce, an Evergreen Subnet purpose-built for buy- and sell-side institutions to measure the benefits of on-chain finance.
Today marks a major update to these efforts as @Citi and DTCC Digital Assets join the network and test the… pic.twitter.com/sX96rNPK9i
— Avalanche 🔺 (@avax) February 14, 2024
Tokenization transforms the rights of an asset into a digital token on a blockchain, also enabling fractional ownership. Citi, a global bank, predicts that the tokenization market could expand to as much as $5 trillion by 2030.
— Cointelegraph (@Cointelegraph) January 11, 2024
Crypto Briefing explained:
The pilot aims to measure the feasibility of private market tokenization through three key use cases, including the end-to-end transfer of tokenized assets, secondary trading, and applying these digital assets as collateral in lending scenarios, Avalanche noted.
Previously, figures like Robert Kiyosaki questioned the very viability of assets like Bitcoin and the U.S. Dollar due to Citi’s asset tokenization plans and plans for instantaneous cross-border settlement.
NEW: Robert Kiyosaki questioned the future of #Bitcoin after Citibank announced Citi Token Services, which allows instant payments and asset tokenization using smart contracts. 🤔 pic.twitter.com/XdF1dr3WYg
— Bitcoin News (@BitcoinNewsCom) September 26, 2023
JP Morgan is tokenizing funds for blockchain integration.
Citi is testing blockchain for FX trades.
Bank of America predicts asset tokenization.
Avalanche Subnets becomes the choice of institutional investors.$AVAX has risen +150% in 30 days, reached this year's ATH at $24.… https://t.co/NBoSkwrGPV pic.twitter.com/y2vu8psVfT
— AlΞx Wacy 🌐 (@wacy_time1) November 16, 2023
According to Blockworks:
Executives at WisdomTree, an asset manager with roughly $100 billion in assets under management, have said they intend to take advantage of what they call an “early mover status in tokenization.”
The company last year launched a consumer app that offers bitcoin, ether, dollar and gold tokens, as well as digital funds with share ownership records kept on the Stellar or Ethereum blockchains.
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