Summary: Citigroup Inc has launched “tokenized deposits,” a new service that converts deposits into digital tokens to enable instant transfers for institutional clients. The service utilizes a private blockchain and allows for global transfers even outside of business hours. Citigroup collaborated with Maersk to test the blockchain-enabled payment solution. The service will be accessible through Citigroup’s existing systems, eliminating the need for clients to have a separate digital wallet. The bank recently announced plans to reorganize into five main divisions.
Tokenized Deposits Enable Instant Transfers
Citigroup Inc has unveiled a new service called “tokenized deposits,” aimed at institutional clients. The service allows deposits to be converted into digital tokens, enabling instant transfers globally. This feature is available even outside of business hours and eliminates the need for traditional banking intermediaries.
Citigroup’s Global Head of Services, Shahmir Khaliq, explained that this development is part of the bank’s ongoing effort to offer real-time transaction banking services to its institutional clients.
Collaboration and Technology
Citigroup worked closely with Maersk, a multinational shipping company, to test and refine the blockchain-enabled payment solution. By leveraging a private blockchain, Citigroup ensures the security and efficiency of its tokenized deposit service.
Unlike other blockchain solutions that rely on public networks like Ethereum, Citigroup’s tokenized deposits can be accessed through its existing systems. This means that institutional clients do not need to set up a separate digital wallet to take advantage of the service.
In addition to launching tokenized deposits, Citigroup’s Securities Services division recently partnered with BondbloX Bond Exchange to become the first digital custodian on the platform. These moves represent Citigroup’s ongoing efforts to stay at the forefront of digital asset solutions in the institutional banking space.
Citigroup’s announcement comes as the bank faces a decline in its shares, which are down over 15% from their year-to-date high. However, the introduction of tokenized deposits demonstrates Citigroup’s commitment to innovation and its determination to provide cutting-edge services to institutional clients.
What are tokenized deposits?
Tokenized deposits are digital representations of traditional deposits that can be transferred instantly and globally using blockchain technology.
Who can access Citigroup’s tokenized deposit service?
The service is available to institutional clients of Citigroup.
Do clients need a separate digital wallet to use the service?
No, clients can access the tokenized deposit service through Citigroup’s existing systems, eliminating the need for a separate digital wallet.
What other collaborations has Citigroup recently entered into?
Citigroup’s Securities Services division partnered with BondbloX Bond Exchange as a digital custodian. This partnership allows Citigroup to offer digital custody services to clients on the platform.