Citigroup Unveils Token Services for Institutional Clients

U.S. banking giant Citigroup (C) has started a tokenization service for cash management and trade finance for institutional clients using blockchain technology and smart contracts, the bank said Monday.

The smart contracts serve the same purpose as bank guarantees and letters of credit, the bank said.

In a pilot, the bank worked with shipping company Maersk and a canal authority to try and expedite the processes, which are generally lengthy and arduous owing to the paperwork and manual processes involved.

“Institutional clients have a need for ‘always-on,’ programmable financial services and Citi Token Services will provide cross-border payments, liquidity and automated trade finance solutions on a 24/7 basis,” the bank said.

In a March 2023 report, Citi forecast that tokenization of digital securities would be a $4 trillion-$5 trillion market by 2030.

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Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.