CitibankC , a global banking giant, has developed a groundbreaking business service centered around smart contracts, aiming to revolutionize instant payments. Known asCiti Token Services, the banking gianthas been at the forefrontof developing digital currencies, and this recent news is an extension of that dynamic.
In arecent press release, the bank unveiled this novel service, which facilitates scheduled transfers of tokenized deposits, ensuring swift payments around the clock.
The intention ofCiti Token Servicesisnt to stop at facilitating quick paymentsit empowers liquidity transfers among Citibanks extensive network of 160 branches worldwide. This feature is tailored for executives entrusted with overseeing a companys cash flow, investments, financing, and financial risks.
The primary objective ofCiti Token Servicesis to enhance companies cash management and trade financing capabilities. Citibank is attempting to satisfy the needs of institutional clients which are increasingly demanding programmable financial services that operate 24/7. In response, the service steps in to provide round-the-clock cross-border payments, liquidity management, and automated trade finance solutions, according to the financial institution.
Citi Token Servicesoperates on a private and permissioned blockchain, solely controlled and managed by Citibank. Consequently, customers wont need to operate a network node to access the services advantages. The protocol underwent rigorous testing with the multinational shipping company Maersk, with the aim of digitizing a solution equivalent to bank guarantees and letters of credit within the trade finance ecosystem.From Pilot To Live Phase
The technology employed in the pilot phase introduced a fully digital process for both buyers and sellers, complete with instant payment capabilities.
Citibank anticipates that this service will substantially reduce transaction processing times from days to mere minutes. Corporate treasurers, Citibank suggests, will be able to manage global liquidity in a timely and programmable manner, ultimately reducing friction related to timing and service gaps.
With the launch of the service, Citibanks commitment to the world of Bitcoin BTC/USD and cryptocurrencies has become self-evident. Since establishing a dedicated unit for Bitcoin and cryptocurrency services in June 2021, the organization has been progressively embracing the emerging crypto-asset market.
This new maneuver aligns the bank with other major financial institutions in the United States, includingBNY Mellon, JP Morgan, Goldman Sachs, andUS Bank, which have ventured into the world of Bitcoin and cryptocurrencies, often offering services such as custody.