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Citi Token Services to offer payments, liquidity for institutions.

Citigroup has launched Citi Token Services, an exclusive blockchain platform catering to institutional clients.

This private, permissioned blockchain facilitates cross-border payments, liquidity, and automated trade finance solutions.

The services integrate tokenized deposits and smart contracts within Citi’s global network, as stated by the company.

Citi Treasury and Trade Solutions (TTS), present in over 90 countries, has successfully conducted two pilots using this service.

In collaboration with Maersk, a Danish shipping company, and an undisclosed canal authority, the program facilitated instant payments to service providers through smart contracts, significantly reducing transaction processing times.

This innovative approach replaces traditional bank guarantees and letters of credit.

Another pilot allowed clients to transfer liquidity seamlessly across various Citi branches, eliminating constraints related to cut-off times and service gaps.

Ryan Rugg, the Global Head of Digital Assets at TTS, emphasized the reduction of frictions in the service window through this round-the-clock liquidity transfer capability.

“Our solutions within the Citi network are complemented by inclusive and open industry collaboration on initiatives like the Regulated Liability Network.”

Citi’s Involvement in RLN Initiative and Deposit Token Exploration

In November 2022, the financial industry introduced the Regulated Liability Network (RLN) technology, and Citi actively participated as one of the prominent financial institutions in a proof-of-concept initiative led by the Federal Reserve Bank of New York.

The project reached a successful conclusion in July.

Regulated Liability Network (RLN)

The RLN infrastructure utilizes a unified ledger approach, placing assets and liabilities on the same ledger to facilitate atomic settlement.

This concept is one of several “unified ledger” proposals that have emerged in recent months.

The new service offered by Citi utilizes deposit tokens, which represent tokenized commercial bank money.

Furthermore, reports indicate that JPMorgan is also exploring the use of deposit tokens.

The technology was initially pioneered in Project Guardian, initiated by the Monetary Authority of Singapore in May 2022, with JPMorgan’s participation.

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