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Financial services and banking giant Citigroup is reportedly launching a unique private blockchain for its clients.<\/p>\n
According to a new Bloomberg\u00a0report<\/a>, Citigroup has unveiled Citi Token Services, a product aimed at tokenizing client deposits.<\/p>\n The service is reportedly focused on improving cash management and trade-finance capabilities, such as increasing the speed of transactions.<\/p>\n Says Citigroup\u2019s global head of services, Shahmir Khaliq,<\/p>\n \u201cThe 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.\u201d<\/em><\/p>\n The so-called \u201ctokenized deposits\u201d represent bank claims and are instantaneously transferrable on the blockchain.<\/p>\n Citigroup tested the new system with the Federal Reserve Bank of New York, according to the Bloomberg report. The system enables banks to generate digital money for their customers, which can then be cleared using central bank reserves. The test was deemed successful, and indicated that digital dollars can enhance wholesale payments without altering the legal treatment of deposits.<\/p>\n Global head of digital assets at Citigroup\u2019s treasury and trade solutions division, Ryan Ruggs, says:<\/p>\n \u201cFrictions related to cutoff times and gaps in the service window will be reduced. Our solutions within the Citi network are complemented by inclusive and open industry collaboration on initiatives like the Regulated Liability Network.\u201d<\/em><\/p>\n Fellow financial giant JP Morgan & Chase is reportedly developing<\/a> similar technologies.<\/p>\n Don’t Miss a Beat \u2013 Subscribe<\/a> to get email alerts delivered directly to your inbox <\/span><\/em>
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