Citigroup ventures into "deposit tokens": Introduces Citi Token Services

According to Bloomberg, Citigroup has launched Citi Token Services, a part of its digital asset initiative aimed at institutional clients. Recently, another financial group, JPMorgan, also announced plans to issue digital deposit tokens, but not for trading cryptocurrencies.

JPMorgan plans to issue digital deposit tokens, but not for trading cryptocurrencies

Citi's New Digital Strategy: Deposit Tokens

Citigroup has officially announced its new token service, called Citi Token Services, aimed at converting customer deposits into digital tokens that can be instantly transferred globally.

The service falls under the company's Treasury and Trade Solutions division, which currently leverages it to optimize cash management and trade finance functions. Shahmir Khaliq, the global head of the division, stated that this move is intended to provide real-time and advanced transaction banking services to institutional clients.

Citi's Cross-Border Remittance Initiative

The introduction of this token service comes at a time when the banking industry faces delays in cross-border remittances, sometimes taking several days due to varying working hours and bank holidays in different countries. Through this new technology, not only will friction be significantly reduced, but it will also ensure instant settlement, greatly enhancing efficiency.

The Advantages of Digitalization for the Shipping Industry

The traditional shipping industry has long been plagued by paper-based operations and manual processes. Citigroup is focusing on trade finance to bring digital solutions to the industry. For example, with smart contract technology, shipping companies can now conduct transactions more swiftly without the need for cumbersome paperwork. Citigroup has collaborated with the Panama Canal Authority and A.P. Moller-Maersk A/S for testing, demonstrating that real-time token transfers based on smart contracts are now feasible.

JPMorgan Plans to Issue Digital Deposit Tokens

American financial giant JPMorgan has indicated that it is exploring digital deposit tokens to enhance the efficiency of cross-border payments and settlements. Internal sources suggest that while there is a potential for significant efficiency gains, regulatory approval is still pending.