Citigroup Launches Citi Token Services for Real-Time Payments

Citigroup Inc. has announced the launch of its new digital token service, called Citi Token Services. This move represents Citigroup’s latest venture into the world of digital assets. The service will enable customers to convert their deposits into digital tokens, which can be instantly sent to recipients worldwide. Citigroup’s treasury and trade solutions division will oversee the management of this new digital asset.

Shahmir Khaliq, global head of Citigroup’s services division, stated that the development of Citi Token Services is part of the company’s strategy to provide real-time, always-on, next-generation transaction banking services to its institutional clients. To facilitate this service, Citigroup will operate on a private blockchain owned and operated the company itself.

It is worth noting that users of Citigroup’s services will not be required to set up a digital wallet to utilize Citi Token Services. The service will be accessible through Citibank’s existing system. In addition to real-time payments, Citi Token Services will also be implemented in a global cash management pilot program, allowing clients to transfer liquidity between Citi branches on a 24/7 basis.

This new digital token service from Citigroup follows months of testing a regulated liability network. The network’s purpose was to enable banks to simulate issuing digital money representing their customers’ funds before settling via central bank reserves on a distributed ledger. The testing primarily focused on the Federal Reserve and aimed to demonstrate the potential benefits of digital currency in improving wholesale payments.

Source: TheStreet, CryptoSlate