Citi unveils new digital assets cash management and trade finance offering

Named Citi Token Services, the capability will provide on a 24/7 basis: cross-border payments, liquidity, and automated trade finance solutions.

Citi Treasury and Trade Solutions (TTS) has developed a new digital asset solutions service aimed at institutional clients for cash management and trade finance, called Citi Token Services.

The offering uses blockchain and smart contract technologies and “will integrate tokenised deposits and smart contracts into Citi’s global network, upgrading core cash management and trade finance capabilities”.

On a 24/7 basis, Citi Token Services will provide users cross-border payments, liquidity, and automated trade finance solutions.

In development Citi worked with Maersk as well as a canal authority “to digitise a solution that serves the same purpose as bank guarantees and letters of credit in the trade finance ecosystem”.

The technology used in the pilot provided buyers and sellers with instant payment capabilities, which will service to make transaction processing more efficient, reduced from taking days to taking minutes. 

Marie-Laure Martin, regional treasury manager for the Americas at Maersk, said: “We are pleased to have collaborated with Citi in the successful test pilots for the guarantee solution using digitised tokens and smart contracts. The innovative solution has promising applications for trade finance.”

In addition, Citi confirmed that its new offering’s blockchain technology is owned and managed by Citi, meaning that there is no requirement for clients to host a blockchain node to access the services.

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Ryan Rugg, global head of digital assets at Citi Treasury and Trade Solutions highlighted how Citi Token Services can serve to reduce frictions when it comes to cut off times and service window gaps, adding: “Citi Token Services provides corporate treasurers with a new tool to manage global liquidity on a just-in-time, programmable basis. 

“[…] Our solutions within the Citi network are complemented by inclusive and open industry collaboration on initiatives like the Regulated Liability Network. 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.”