Citigroup To Support Instant Global Transfers With New Token Service
This initiative represents Citigroup‘s contribution to the world of “tokenized deposits,” digital coins that are transferable and represent claims against banks. Crucially, these tokens operate on blockchain technology, ensuring instant settlement.
Citigroup’s offering utilizes a private blockchain owned and managed by the bank, simplifying access for clients who won’t require their digital wallets. Instead, they can seamlessly access the service through the bank’s existing systems.
The primary target of this innovation is streamlining cross-border money transfers, which can sometimes take days due to the complexity of systems used by banks and governments worldwide, as well as differing work hours and holidays.
Citigroup has long been a proponent of blockchain-based tokenization for real-world assets, envisioning a market worth $4 trillion to $5 trillion by 2030. The bank believes that blockchain tokenization offers technological superiority and greater investment opportunities in private markets, potentially superseding legacy financial infrastructure.
Furthermore, Citi Securities Service has joined the BondbloX Bond Exchange (BBX), a DLT-based platform claiming to be the world’s first fractional bond exchange. Citigroup is the first digital custodian to join this exchange, emphasizing its commitment to blockchain-based innovation.
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