Citigroup Introduces Revolutionary Blockchain Service For Institutional Clients

September 18, 2023 12:09 pm Comments

Citigroup, one of the world’s foremost banking giants, has announced plans to introduce a revolutionary blockchain service for its institutional clients.

Anyone familiar with banking practices knows that they are often cumbersome, costly, and inefficient—why does it take 2-3 business days for a deposit sent electronically to appear in your account?

Retail banking customers aren’t the only ones who suffer from such lags and delays—institutional clients have it just as bad, if not worse.

In an attempt to solve these issues and capitalize on nascent blockchain technology, Citigroup has announced Citi Token Services for its institutional clients.

Citi Token Services will leverage blockchain technology to settle transactions and issue things like guarantees of credit instantly, removing the lengthy waiting times and frustration from these processes.

You can view the official Citigroup press release by clicking on the link in the X social media post below:

Wu Blockchain explained: “This product will be based on a private blockchain controlled by the bank, converting customer deposits into digital tokens that can be sent instantly. Customers do not need to set up their own digital wallets.”

According to Blockworks:

Maersk partnered with Citi Treasury and Trade Solutions (CTTS) for Citi’s digital asset trading service, which would serve the same purpose as “bank guarantees and letters of credit” in traditional finance, according to a press release.

Both companies reported that the pilot program was able to provide instantaneous payments to service providers via smart contracts, something that would be beneficial to companies with many vendors.

Ledger Insights clarified: “Citi has unveiled Citi Token Services pilots. Includes tokenized deposits + smart contract bank guarantees. This is separate from the Regulated Liability Network.”

In a related report, Bloomberg revealed that “Citigroup is planning job cuts as CEO Jane Fraser restructures the bank.” Could this have anything to do with their announcement of always-on, integrated blockchain services?

U Today explained that Citigroup’s newly announced services will not be decentralized or permissionless:

Crucially, Citigroup employs a private, permissioned blockchain technology that is owned and managed by the institution itself. This approach ensures that clients can access these cutting-edge services without the need to host their own blockchain nodes.

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