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Citigroup introduced Citi Token Services. This innovative product converts customer deposits into digital tokens, enabling instant transfers worldwide. According to Bloomberg, Citi Token Services is primarily aimed at expanding its cash management and trade finance capabilities. The initiative represents Citigroup's contribution to the world of "tokenized deposits" – digital coins. It is important to note that these tokens operate on blockchain technology, allowing for instant settlement.
Citigroup's offering uses a private blockchain owned and operated by the bank, making it easier for customers who won't need digital wallets. Instead, they can seamlessly access the service through the bank's existing systems. The main goal of the new service is to streamline cross-border money transfers, which can sometimes take several days due to the complexity of the systems used by banks and governments around the world, as well as differences in opening hours and holidays.
Citigroup has long been a proponent of blockchain-based tokenization of real assets, forecasting a market worth between $4 trillion and $5 trillion by 2030. The bank believes that blockchain-enabled tokenization provides technological superiority and greater investment opportunities in private markets, potentially replacing legacy financial instruments.
Image: Retail Banker International