Citigroup Inc (NYSE:C) has officially unveiled its private blockchain service Citi Token Services, a smart contract-based solution designed to support cross-border cash management and trade finance for the bank’s institutional clients.
Offered through Citi Treasury and Trade Solutions, the service integrates tokenised deposits and smart contracts into Citi's global network and aims to provide “always-on”, programmable financial services.
Notably, Citi Token Services provides cross-border payments and automated trade finance solutions on a 24/7 basis.
Citi worked with Danish shipping firm Maersk on a test run for the blockchain solution, which Marie-Laure Martin, regional treasury manager for the Americas at Maersk, called an “innovative solution (that) has promising applications for trade finance”.
Citi Token Services has also been applied to a global cash-management pilot, allowing clients to transfer liquidity between Citi branches around the clock.
Ryan Rugg, global head of digital assets at Citi Treasury and Trade Solutions, emphasised that the service would mitigate frictions related to cut-off times and service window gaps, offering corporate treasurers a new tool to manage global liquidity on a programmable, just-in-time basis.
“We are excited about both the potential for shared ledger technology to update Citi services, and the broader financial system in partnership with regulators and industry peers,” said Rugg.
Private blockchains, like the one utilised by Citi, differ from public blockchains like the one on which bitcoin runs, in that they are restricted to specific members and are centralised, offering more control and privacy.