Citigroup, the third-largest banking institution in the United States, announced on Monday the launch of Citi Token Services, a blockchain-based cross-border payment solution for institutional customers.
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- The service will leverage tokenized deposits and smart contracts to provide real-time, 24/7 cross-border settlements and liquidity to institutional clients anywhere in the world, Citi said in a press release.
- “[The news] “This is another sign that major financial institutions are continuing to embrace blockchain technology,” said Markus Thielen, head of research and strategy at Singapore-based digital asset services platform Matrixport, in an emailed statement. “There is no doubt that blockchain will be seen as a technological improvement to the current financial system.”
- Citi Token Services was tested in a pilot program with logistics company Maersk.
- The private blockchain technology used for Citi Token Services is owned and managed by Citi itself. The company explained that customers do not need to host a blockchain node to use the service.
- JPMorgan Chase & Co. is also exploring a blockchain-based deposit token for faster cross-border payments and settlements, according to a Bloomberg report in early September.
- According to the company website, Citigroup has over 13,000 institutional clients, including 90% of the global Fortune 500 companies. In total, the company has over 100 million customers in almost 160 countries.
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