U.Today - Citigroup (NYSE:C) has made a groundbreaking announcement with the introduction of its pioneering , signaling a transformative era for cash management and trade finance. This innovative service harnesses the potential of blockchain and smart contract technologies, with the goal of reshaping solutions for institutional clients.
This move is set to fundamentally revolutionize these specific business domains by integrating tokenized deposits and smart contracts into Citigroup's extensive global network.
In response to the growing demand for 24/7 programmable financial services, Citi Token Services will offer institutional clients a comprehensive range of solutions, including cross-border payments, liquidity management and automated trade finance services.
What has been accomplished so far?
One notable achievement of this service has been a successful pilot collaboration with key industry players, including a prominent shipping company, Maersk. Together, they digitized a solution akin to traditional guarantees and letters of credit within the trade finance ecosystem. The technology demonstrated in this pilot program streamlines the entire process, ensuring that both buyers and sellers can enjoy instant payment capabilities. This advancement promises to reduce transaction processing times from several days to just a matter of minutes.In addition to its significant strides in trade finance, Citi Token Services has also been applied to a global cash management pilot program. This initiative empowers clients with the ability to seamlessly transfer liquidity between different Citi branches on a 24/7 basis.
Crucially, employs a private, permissioned blockchain technology that is owned and managed by the institution itself. This approach ensures that clients can access these cutting-edge services without the need to host their own blockchain nodes.