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Citi has officially launched its Citi Token Services for Cash, enabling real-time, multimillion-dollar cross-border transactions and providing clients with 24/7 access to liquidity. The service, which operates between participating branches, aims to streamline international payments using a private, permissioned blockchain fully owned and managed by Citi.
According to Citi, the blockchain ensures security and ease of use for clients, who are not required to manage or hold any tokens themselves. Following successful pilots last year, the service is now available for commercial use, with global food company Mars as the first onboard client.
Mayela Stuparitz, Global Treasury Director at Mars, highlighted the impact of the service on the company’s operations: “This solution allows us to initiate instant payments and seamlessly move liquidity between our Citi accounts. Tokenizing cash has reduced the friction caused by traditional cutoff times and has simplified our transaction processes.”
She further emphasized that Citi’s private blockchain offers the benefits of blockchain technology without added complexity or risk: “Our processes, reporting, and operational risks remain the same, while gaining the efficiency of this new solution.”
In addition to Citi Token Services for Cash, Citi is piloting a related service called Citi Token Services for Trade. This solution is being tested in partnership with shipping agents CB Fenton and GAC Panama Shipping and aims to replace traditional trade finance instruments, such as letters of credit and guarantees, with smart contracts backed by tokenized cash. The system enables 24/7 settlement between Citi clients and their counterparties, allowing for automatic execution of payments when pre-set criteria are met.
Ryan Rugg, Head of Digital Assets, Treasury and Trade Solutions at Citi, stated: “The continued development of Citi Token Services is a vital part of our goal to provide real-time, always-on services for institutional clients. By leveraging Distributed Ledger Technology and smart contracts, we have developed a programmable payment and liquidity platform that will reduce costs and streamline financial processes.”
With this launch, Citi positions itself at the forefront of digital banking innovation, offering its clients a secure and efficient way to manage cross-border payments and liquidity in a constantly connected global market.
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