- Citi has launched Citi Token Services, a blockchain platform catering to institutional clients seeking digital asset solutions
- In a pilot with Maersk and a canal authority, Citi demonstrated programmable tokenized deposits for instant payments via smart contracts
- Citi Token Services operates on a permissioned blockchain, eliminating the need for clients to host blockchain nodes
Banking giant Citi yesterday announced Citi Token Services, a blockchain-based platform designed to cater to institutional clients seeking digital asset solutions for cash management and trade finance. This move marks a step toward integrating tokenized deposits and smart contracts into Citi’s global network and aims to tackle JPMogran’s inter-bank blockchain which runs on Quorum, a private version of Ethereum.
Citi Worked with Maersk to Prove Concept
Citi stated in a press release that Citi Token Services will focus on delivering 24/7 cross-border payments, liquidity, and automated trade finance solutions, aiming to meet the growing demand for programmable financial services among institutional clients.
The platform’s capabilities were demonstrated through a pilot with shipping titan Maersk and an unnamed canal authority, showcasing programmable tokenized deposits for instant payments via smart contracts. This innovation uses blockchain technology to streamline processes, reducing transaction processing times from days to minutes.
Maersk is no stranger to blockchain innovation, having worked with IBM for years over the logistics blockchain platform TradeLens, which was shuttered last November.
Internal and External Use
As well as external usage, Citi aims to implement Citi Token Services internally having deployed it in a global cash management pilot which enables clients to transfer liquidity across Citi branches around the clock.
The platform operates on a permissioned blockchain owned and managed by Citi, eliminating the need for clients to host a blockchain node, with Citi saying that the approach aligns with its commitment to developing digital asset solutions.
Fellow banking giant JPMorgan has been involved in the in-house blockchain game for more than four years thanks to its use of the Quorum blockchain to create the JPMorgan coin in 2019 for use in its Interbank Information Network.
