Citibank c, a global banking giant, has developed a groundbreaking business service around smart contracts, aiming to revolutionize instant payments. Known as Citi Token Servicesthe banking giant has been paramount of digital currency development, and this recent news is an extension of that dynamic.
In a recent press releasethe bank unveiled this new service, which allows scheduled transfers of tokenized deposits, ensuring fast payments 24 hours a day.
The intention of Citi Token Services It doesn’t stop at facilitating fast payments; it enables liquidity transfers between Citibank’s extensive network of 160 branches worldwide. This position is tailored for executives charged with overseeing a company’s cash flow, investments, financing and financial risks.
The main purpose of Citi Token Services is to improve companies’ cash management and trade financing capabilities. Citibank seeks to meet the needs of institutional customers, who are increasingly demanding programmable financial services available 24 hours a day, 7 days a week. In response, the agency is stepping in to provide 24-hour cross-border payments, liquidity management and automated trade finance solutions, the financial institution said.
Citi Token Services operates on a private and permissioned blockchain, controlled and managed exclusively by Citibank. So customers do not need to use a network node to access the benefits of the service. The protocol was extensively tested at multinational shipping company Maersk, with the aim of digitalizing a solution equivalent to bank guarantees and letters of credit within the trade finance ecosystem.
From pilot to live phase
The technology used in the pilot phase introduced a fully digital process for both buyers and sellers, complete with instant payment options.
Citibank expects this service to significantly reduce transaction processing time from days to just minutes. Citibank suggests that corporate treasurers 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, Citibank is committed to the world of Bitcoin BTC/USD and cryptocurrencies have become self-evident. Since establishing a dedicated unit for Bitcoin and cryptocurrency services in June 2021, the organization has gradually embraced the emerging crypto asset market.
This new maneuver puts the bank in line with other major financial institutions in the United States, including BNY Mellon, JP Morgan, Goldman SachsAnd American bankwho have ventured into the world of Bitcoin and cryptocurrencies and often offer services such as custody.