Citigroup launched Citi Token for payments between corporate clients

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Citi Treasury and Trade Solutionsannounced the pilot launch of Citi Token Services for cash management and trade finance based on blockchain technology and smart contracts.

The project team reports that Citi Tokenis 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 possibilities of managing funds and trade finance instruments, the developers promise.

"Smart technologies used in the pilotThe Citi Token project will provide buyers and sellers with secure and fully automated settlement processes, which is expected to reduce transaction processing times to minutes,” Citi representatives said.

Citi Token pilot should helpto develop a technology for offering “digital financial services based on blockchain”: to test procedures accompanying cross-border payments, liquidity transfers and automated solutions for trade finance.

Earlier, the Citigroup banking group accepted
participation in a series of experiments of the interbank transfer system SWIFT on the transfer of tokenized assets between various public and commercial blockchains.