Crypto News – The largest U.S. bank, Citigroup, announced on Monday that it has begun offering institutional clients a tokenization solution for cash management and trade finance using blockchain technology and smart contracts.
Banking Giant Citigroup Announces Development of a Tokenization Solution for Institutional Clients
According to the bank, smart contracts have the same function as letters of credit and bank guarantees. Moreover, the bank worked with a canal authority and the shipping firm Maersk as part of a pilot to attempt and speed up the procedures, which are generally drawn out and time-consuming due to the paperwork and manual procedures needed.
Institutional clients have a need for ‘always-on,’ programmable financial services and Citi Token Services will provide cross-border payments, liquidity and automated trade finance solutions on a 24/7 basis,the bank
Citi predicted that the market for tokenizing digital securities would reach $4 trillion to $5 trillion in value by 2030 in research from March 2023.
A provider of varied financial services is Citigroup Inc. Retail, commercial, and investment banking, securities brokerage, trade and securities services, and wealth management solutions are all included in the range of services.