On September 19, financial group Citigroup launched a pilot version of Citi Token Services, a new platform to enhance cash management and trade finance transactions. The service is attracting attention by using blockchain technology and smart contracts to provide innovative digital asset solutions to institutional customers.
According to Citigroup, Citi Token Services will integrate crypto deposits and smart contracts into the group's global network to upgrade core trade finance and cash management capabilities. The service is designed to meet the need for programmable financial services, cross-border payments, liquidation and 24/7 automated trade finance solutions.
The financial giant believes that within the next 6-8 years, more than a billion people will use blockchain technology. At the same time, it is predicted that the popularity of this technology will be driven by central bank digital currencies (CBDC) and cryptoassets.
Citigroup has been testing its Token service with global trading group Maersk and a channel regulator to digitize services similar to bank guarantees and letters of credit in the trade finance system. The results have demonstrated the application potential of new solutions.
With new technology, buying and selling will become faster, transaction processing time can be reduced from several days to just a few minutes. In addition, Citi Token Services has been integrated into the global cash management pilot program, helping customers transfer liquidation between different Citi branches 24/7.
Notably, the blockchain platform used is a Private Blockchain and is managed by Citigroup, so customers do not have to install a blockchain node to use the service. Citigroup said it will continue to develop digital asset solutions, aiming to improve products and services in the fields of cryptocurrency, trading, securities, custody, asset services and asset utilization. Mortgage.
