Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
Citigroup has launched Citi Token Services, a private, permissioned blockchain designed to provide cross-border payments, liquidity, and automated trade finance solutions for institutional clients. The new offerings “will incorporate tokenized deposits and smart contracts into Citi’s global network,” as stated in an announcement.
Citi Treasury and Trade Solutions (TTS), which holds banking licenses in more than 90 countries, has successfully completed two pilot programs for the service. It collaborated with Danish shipping firm Maersk and an undisclosed canal authority on a project that facilitated instant payments to service providers through smart contracts, significantly decreasing transaction processing times from days to mere minutes. The service serves as a substitute for bank guarantees and letters of credit, according to the statement.
A second pilot allowed clients to transfer liquidity between Citi branches continuously, alleviating “frictions related to cut-off times and gaps in the service window,” stated TTS global head of digital assets Ryan Rugg. He added:
“Our solutions within the Citi network are enhanced by inclusive and open industry collaboration on initiatives like the Regulated Liability Network.”
Related Posts
The Regulated Liability Network (RLN) technology was unveiled in November 2022. Citi was among the major financial institutions that took part in a proof-of-concept led by the Federal Reserve Bank of New York, which concluded in July.
Related: Distributed ledger tech could save TradFi $100B a year — Lobby group
The RLN infrastructure positions assets and liabilities on the same ledger to enable atomic settlement. It is one of several “unified ledger” proposals that have surfaced in recent months. The new Citi service utilizes deposit tokens, which represent tokenized commercial bank money.
In light of the Citi Token Services announcement, don’t forget they’re building a separate protocol to sidestep #Bitcoin, called Regulated Liability Network. From the RLN website: pic.twitter.com/2dUYJX4zK0
— Cameron Otsuka (@CameronOtsuka) September 18, 2023
JPMorgan is also reportedly investigating the application of deposit tokens. This technology was first developed in Project Guardian, initiated in May 2022 by the Monetary Authority of Singapore, in which JPMorgan was involved.
Magazine: Are DAOs overhyped and unworkable? Lessons from the front lines
