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At Sibos, Citi Treasury and Trade Solutions (TTS) has unveiled the initiation and testing stage of Citi Token Services, an innovative platform engineered to improve cash management and trade finance functionalities for institutional clientele. By leveraging blockchain and smart contract technologies, the service is poised to offer cutting-edge digital asset solutions.
Citi Token Services for trade
Citi worked with Maersk and a canal authority to digitise a solution that serves the same purpose as bank guarantees and letters of credit in the trade finance ecosystem. The pilot demonstrated programmable transfer of tokenised deposits that provided instant payments to service providers via smart contracts.
Marie-Laure Martin, Regional Treasury Manager for the Americas at Maersk, said, “We are pleased to have collaborated with Citi in the successful test pilots for the guarantee solution using digitized tokens and smart contracts. The innovative solution has promising applications for trade finance.”
The technology used in the pilot provided a completely digital process to both buyers and sellers with instant payment capabilities, which is expected to reduce transaction processing times from days to minutes.
Citi Token Services for cash
Citi Token Services has also been applied to a global cash management pilot, enabling clients to transfer liquidity between Citi branches on a 24/7 basis.
Ryan Rugg, Global Head of Digital Assets at Citi Treasury and Trade Solutions said, “Citi Token Services provides corporate treasurers with a new tool to manage global liquidity on a just-in-time, programmable basis. Frictions related to cut off times and gaps in the service window will be reduced. Our solutions within the Citi network are complemented by inclusive and open industry collaboration on initiatives like the Regulated Liability Network. We are excited about both the potential for shared ledger technology to update Citi services, and the broader financial system in partnership with regulators and industry peers.”
Compliant, integrated and seamless technology solutions
The private/permissioned blockchain technology used is owned and managed by Citi and clients will not be required to host a blockchain node to access the services.
Citi continues to develop digital asset solutions, in line with its goals and risk appetite, using a unified set of shared technology capabilities and a common strategic approach. These innovative solutions enhance Citi’s products and services including digital money, trade, securities, custody, asset servicing and collateral mobility.
