Citigroup announced Citi Token Services for institutional clients, exhibiting digital asset growth. The bank offers a private blockchain infrastructure to turn deposits into digital tokens. This conversion improves and speeds up transactions. Citigroup’s infrastructure will supply the service, so clients won’t require digital wallets.
Citigroup Becomes First Digital Custodian for BondbloX Bond Exchange
Citigroup’s move highlights its commitment to digital asset and financial services expansion. Citi Token Services enhances the bank’s digital transformation and capabilities to satisfy institutional clients’ changing demands.
Citigroup partnered with BondbloX Bond Exchange on September 15, advancing digital assets. Citigroup became the first digital custodian for the Singapore Monetary Authority-regulated BondbloX Bond Exchange (BBX). BBX pioneered fractional bond exchange with atomic settlement and distributed ledger.
With this partnership, Citigroup’s qualifying clients can trade fractionalized bonds with BBX, which offers settlement and custody. Citigroup has scalable digital custody. This enhances the bank’s settlement and custody for permissioned blockchain asset holders.
Regular wholesale bond fractional transactions on BBX need $1,000. Decentralized ledgers securely store tokenized bonds for atomic settlement and rapid transactions. Bond payments generally take 48 hours, so this is exceptional. The atomic settlement system uses blockchain smart contracts for clearing and settlement.
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Citigroup began holding regular bonds in 2021, becoming BondbloX’s custodian. Citigroup owns fractional, tokenized bonds after this innovation. Extended custody services from Citigroup allow these products to reach additional institutional investors. This lets BondbloX clients buy worldwide bonds and diversify their digital asset holdings.
Citi Group Tests Private Blockchain for Rapid Global Transfers
Citigroup and BondbloX may make the bond market transparent, automated, and inclusive for more investors. This alliance democratizes and makes bond investment more accessible, adds BondbloX Co-Founder Dr. Rahul Banerjee.
Citigroup invests in digital asset innovation beyond bonds and throughout digital finance. Digital money, asset management, secure storage, and collateral transfer are new financial industries the organization is pursuing.
Citigroup is testing a private blockchain using BondbloX. Deposits are converted into digital tokens for quick global transfers via blockchain-based payment channels.
Shahmir Khaliq, Citi’s global head of services, said Citi Token Services meets institutional customers’ growing demands with highly liquid. With its innovative approach, Citi group leads the financial services digital revolution. Blockchain and digital assets will help Citi group enhance customer service in a shifting financial climate.