Citibank launches “year-round” digital token platform for institutional clients

Compiled by: Blockchain Knight

Banking giant Citibank has launched a new blockchain and Crypto asset-based platform for its institutional clients. Citi Token Services, launched by the bank’s Treasury and Trade Solutions (TTS) arm, features a number of new functions and features.

According to the official press release, This new Crypto platform is designed to provide institutions with smart contracts and blockchain technology. In this way, Citibank hopes to meet the needs of customers for “tokenized deposits” and integrate these technologies with its global network.

Ultimately, the bank aims to “upgrade” its cash management and transaction capabilities for customers. These institutions will be able to enjoy some of the advantages of smart contracts and blockchain, such as cross-border payments, programmable financial services, automated trading solutions, etc.

Customers can use these services every day of the year without any limitations of traditional platforms. Shahmir Khaliq, head of the bank’s global services business, said:

“Digital asset technologies have the potential to upgrade the regulated financial system by applying new technologies to existing legal tools and robust regulatory frameworks. The development of Citi Token Services is our next step in delivering real-time, always-on, next-generation transaction banking to institutional clients part of the services journey. This development complements our industry-leading work on regulated accountability networks to create interoperable digital asset solutions on a multi-bank basis."

The digital token platform was jointly developed by TTS and logistics company Maersk (Marks). The bank’s partners have worked with IBM and other companies to develop blockchain-based solutions.

According to a press release, the project was successful during its pilot phase. Partners can transfer funds in the form of tokenized assets to provide instant payment settlement on the blockchain, and the bank expects this new platform to shorten transaction times for institutional clients.

Marie-Laure Martin, Maersk Finance Manager Americas, said:

“We are pleased to work with Citibank to successfully pilot a guarantee solution using digital tokens and smart contracts. This innovative solution has broad application prospects in the field of trade finance.”

In addition, the bank also claimed that it will host the nodes required to run its blockchain and continue to develop digital asset solutions.

Another report in 2021 revealed that Citibank has been betting heavily on the blockchain and Crypto space in recent years. The bank has promised to create more than 100 positions in this emerging area to gain a stronger foothold.

On social media platforms, the news was met with some skepticism. Some users expressed confusion about the “token” used by Citibank, and others wondered why the bank would use blockchain technology since the platform operates as a “normal database.”