Recent crypto news reports that CitiBank, one of the world’s largest banking institutions, is transforming customer deposits into digital tokens, which can be sent globally in real time. Here is all the information about this revolutionary initiative.
CitiBank has officially launched its token service, known as Citi Token Services, as part of a broader initiative to provide digital assets to institutional clients. This product will enable customers to convert their deposits into digital tokens that can be instantly transferred around the world.
Shahmir Khaliq, the global head of the services division, commented on the matter: “The development of Citi Token Services is part of our journey to provide real-time, always-on, next-generation transaction banking services to our institutional clients.”
It is worth noting that this move represents the latest attempt by a major banking institution to offer tokenized deposits, which are digital coins that act as a credit representative to banking organizations. These tokens are managed via blockchain technology, allowing for an instant settlement process. CitiBank will use its own private blockchain to host its service, meaning that customers will not have to set up their own digital wallets, but rather can access the service through existing banking systems.
CitiBank has been looking for ways to speed up cross-border financial transfers, which often take several days due to the complexity of the systems used by banks, governments, and differences in time zones and holidays. The bank has previously participated in a test with a regulated network in collaboration with the Federal Reserve Bank of New York and other global banks, which showed that digital US dollars can significantly improve wholesale payments without compromising the legal treatment of deposits.
In addition, CitiBank is bringing digital offerings to the trade finance industry, which has been traditionally hampered by paper and manual procedures. The bank has already conducted tests in collaboration with a channel authority and AP Moller-Maersk, a leading shipping company, to demonstrate the instant transfer of tokenized deposits to suppliers based on smart contracts. Marie-Laure Martin, regional treasury manager for the Americas at Maersk, commented about the project: “We are thrilled to have collaborated with Citi in the successful pilot testing of the collateral solution using digital tokens and smart contracts. This innovative solution offers promising prospects for the trade finance sector.”
CitiBank’s revolutionary Citi Token Services is a major step forward in the world of digital finance, allowing for faster and more secure global payments. It is clear that this initiative, along with JPMorgan Chase’s exploration of a blockchain-based digital deposit token to speed up cross-border payments and settlements, will have a significant impact on the future of finance.