Citigroup innovates: Launches digital token and blockchain system

Citi group digital token

IMPORTANT POINTS:

  • Citigroup launches a digital token service called “Citi Token Services” for real-time payments.
  • The bank will use a private blockchain to operate the Citi Token service.
  • Citi Group members will not need a digital wallet and will be able to transfer liquidity between Citi branches 24 hours a day.

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Citigroup Inc., a $1.72 billion asset management giant, marks a milestone with the launch of its new digital token service and blockchain system. This move represents the bank’s latest investment in the digital asset space. The token, named “Citi Token Services”, promises to revolutionize real-time payments.

In the bank’s words, Citi Token Services will transform customer deposits into digital tokens. These tokens can be sent instantly to any recipient around the world. It is the firm’s treasury and trade solutions division that will lead this new digital asset.

To carry out the Citi Token service, Citigroup will operate on a private blockchain, exclusively owned by the company. Shahmir Khaliq, global leader of the company’s services division, comments:

On the other hand, one aspect to highlight is convenience for Citi Group members. They will not need to set up a digital wallet to use this new functionality. The service will be available through Citibank’s existing system. According to the bank, Citi Token Services will also be integrated into a global cash management pilot project. This will allow clients to transfer liquidity between Citi branches uninterrupted, 24/7.

“The development of Citi Token Services is part of our journey to deliver next-generation, always-on, real-time transaction banking services to our institutional clients.”

This development comes after months of extensive testing on a regulated liability network. This network allows banks to simulate the issuance of digital money that represents their clients’ own funds. Subsequently, a settlement is made through the central bank’s reserves on a distributed ledger. Furthermore, it is worth noting that the test was aimed at the Fed with the aim of demonstrating that digital currency can optimize wholesale payments.