Compiled by: Blockchain Knight
Citibank, a banking giant, has launched a new platform based on blockchain and crypto assets for its institutional clients. Citi Token Services, released by the bank’s Treasury and Trade Solutions (TTS) department, comes with multiple new features and capabilities.
According to the official press release, this new crypto platform aims to provide institutions with smart contracts and blockchain technology. Citibank hopes to meet the demand for “tokenized deposits” from its clients and integrate these technologies with its global network.
The bank’s ultimate goal is to “upgrade” its clients’ cash management and transaction capabilities. These institutions will be able to enjoy the advantages of smart contracts and blockchain, such as cross-border payments, programmable financial services, and automated transaction solutions.
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Clients can use these services every day throughout the year without any restrictions imposed by traditional platforms. Shahmir Khaliq, Global Head of Service Business at Citibank, said:
“Digital asset technology has the potential to upgrade regulated financial systems by applying new technology to existing legal tools and robust regulatory frameworks. 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. This development complements our industry-leading work in regulated responsibility networks to create interoperable digital asset solutions across multiple banks.”
The digital token platform was developed jointly by TTS and logistics company Marks. The bank’s partner has previously collaborated with IBM and other companies to develop blockchain-based solutions.
According to the press release, the project has been successful in the pilot phase. Partners can transfer funds in the form of tokenized assets for instant payment settlement on the blockchain. The bank expects this new platform to shorten the transaction time for its institutional clients.
Marie-Laure Martin, Finance Manager for the Americas at Marks, said:
“We are pleased to collaborate with Citibank and have successfully conducted pilot work on guarantee solutions using digital tokens and smart contracts, which have broad application prospects in the trade financing field.”
In addition, the bank claims to host the nodes required to operate its blockchain and continue to develop digital asset solutions.
Another report from 2021 shows that Citibank has been heavily investing in the blockchain and crypto field in recent years. The bank has committed to creating over 100 positions in this emerging field for a stronger foothold.
On social media platforms, this news has raised some questions. Some users are confused about the “tokens” used by Citibank, while others wonder why the bank is using blockchain technology if the platform operates as a “regular database”.
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