© Reuters.
In a move aimed at revolutionizing cash management and trade finance operations, Citi Treasury and Trade Solutions (TTS) has launched its product, Citi Token Services. The service aims to transform customer deposits into digital tokens that can be instantly sent anywhere globally.
The innovative service is part of the firm’s treasury and trade solutions division’s initiative to deliver real-time, always-on, next-generation transaction banking services to their institutional clients, according to an emailed statement on Tuesday. Shahmir Khaliq, the global head of services, emphasized the significance of the development of Citi Token Services in this journey.
The U.S. lender will offer tokenized deposits – essentially transferable digital coins that act as claims against the bank – to support institutional clients’ cash management and trade finance needs. These digital tokens aim to provide a more efficient and effective solution for managing cash flows and facilitating international trade.
Previously, Citi collaborated with shipping giant Maersk and an unnamed canal authority on a project to digitize a solution that serves the same purpose as bank guarantees and letters of credit in the trade finance ecosystem. Marie-Laure Martin, regional treasury manager for the Americas at Maersk, expressed satisfaction with the successful test pilots for the guarantee solution using digitized tokens and smart contracts. She noted that the innovative solution has promising applications for trade finance.
The launch of Citi Token Services marks a significant step in integrating digital solutions into traditional banking structures. It showcases how financial institutions are increasingly leveraging technology to streamline operations and provide more efficient services for their clients.
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