The project team reports that Citi Token is a derivative digital asset that integrates tokenized deposits and smart contracts of corporate (institutional) clients into the global network of Citi Bank. This will expand the capabilities of managing funds and trade finance instruments, the developers promise.
“The smart technologies used in the Citi Token pilot will provide buyers and sellers with secure and fully automated settlement processes, which is expected to reduce transaction processing times to minutes,” Citi officials said.
The pilot operation of Citi Token should help test the technology for offering “blockchain-based digital financial services”: testing the procedures that accompany cross-border payments, liquidity movements and automated solutions for trade finance.
Previously, the Citigroup banking group took part in a series of experiments with the SWIFT interbank transfer system to transfer tokenized assets between various public and commercial blockchains.
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