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HomeCrypto NewsFinancial Giant CitiGroup Launches Citi Token Services on Private Blockchain

Financial Giant CitiGroup Launches Citi Token Services on Private Blockchain

CitiGroup, Citi Token Services, blockchain, digital assets, JPMorgan, financial system, banking services, digital asset trading

In a significant move towards advancing the global financial system, CitiGroup has developed a private blockchain known as “Citi Token Services.” This new offering aims to grant its clients access to tokenized deposits, cross-border payments, and automated trade finance solutions 24/7. It aligns with the objectives of the Regulated Liability Network, a whitepaper published in November 2022, which aspires to enable on-chain, 24/7 programmable, final settlement in sovereign currencies.

Shahmir Khaliq, the Head of Global Services at CitiGroup, emphasized that digital asset technologies have the potential to upgrade the regulated financial system. He stated, “The development of Citi Token Services is part of our journey to deliver real-time, always-on, next-generation transaction banking services to our institutional clients.”

Maersk partnered with Citi Treasury and Trade Solutions (CTTS) for Citi’s digital asset trading service, which is poised to fulfill the same role as “bank guarantees and letters of credit” in traditional finance. Both companies have reported the success of the pilot program in providing instant payments to service providers through smart contracts, a feature that would greatly benefit companies dealing with multiple vendors.

The launch of this new product also places a strong emphasis on ensuring liquidity for premier banking clients, with the inclusion of a cash management pilot.

JPMorgan Trails Behind Citi in Private Blockchain Services

It appears that CitiGroup has taken the lead over JPMorgan in the realm of private blockchain services. JPMorgan, the largest bank in the United States by assets, is still in the “early stages” of exploring a similar private blockchain service, as reported by Bloomberg.

JPMorgan initially expressed interest in bank-issued deposit tokens, distinct from CBDCs or stablecoins, in February 2023.

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