The global bank has announced new blockchain services that include digital custody of a blockchain-powered bond exchange and tokenized deposits.
International bank Citi has warmed up to crypto earlier, with several reports supporting its applications’ benefits. However, the bank has now launched multiple blockchain services, indicating its clear confidence regarding the crypto industry. It has announced several measures from tokenized deposits to digital custody solutions for a blockchain-based bond exchange.
Firstly, it launched its Citi Token Services, which uses smart contracts and blockchain technologies. Citi would offer digital asset solutions to its institutional clients using such technologies. Its cash management and trade finance services will be upgraded with tokenized deposits and smart contracts.
“Digital asset technologies have the potential to upgrade the regulated financial system by applying new technologies to existing legal instruments and well-established regulatory frameworks. The development of Citi Token Services is part of our journey to deliver real-time, always-on, next generation transaction banking services to our institutional clients,” said the bank’s Global Head of Services, Shahmir Khaliq.
The Citi Token Services will implement instant transactions for cash, trade, and other use cases.
Secondly, Citi has become a digital custodian for the BondbloX Bond Exchange. BondbloX uses digital ledger technology to simplify bond trading. It fractionalizes full-sized bonds for greater access to a range of investors. With the partnership, Citi’s clients will get entry to Bondblox’s trading services.
Citi expressed its bullishness on the digital custody technology for enabling it to provide services for assets on permissioned blockchain networks. Citi’s jump to blockchain services could also be a positive trigger for other banks to offer similar services.