Today Citigroup made a surprise announcement that they are now providing a new service that tokenizes their deposits and turns them into an unique cryptocurrency, that is stored using blockchain technology, and allows for cross-border payments.
This move comes just after the Federal Reserve launched your instant transfer payment system FedNow in July – a system that allows for real-time transactions and payments in just seconds, at any moment at any time; which, according to prior statements from the Feds and the Biden administration, lays the foundation for a central bank digital currency (CBDC).
Interestingly Citi was not involved in the initial pilot program to test and rollout FedNow, but the Federal Reserve has indicated that they seek to have all U.S. banks and other financial institutions join FedNow.
Citi explains their breaking move in a press release published today:
Citi Treasury and Trade Solutions (TTS) announces the creation and piloting of Citi Token Services for cash management and trade finance. The service uses blockchain and smart contract technologies to deliver digital asset solutions for institutional clients. Citi Token Services will integrate tokenized deposits and smart contracts into Citi’s global network, upgrading core cash management and trade finance capabilities.
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.
Shahmir Khaliq, Global Head of Services, said,
Digital asset technologies have the potential to upgrade the regulated financial system by applying new technologies to existing legal instruments and well-established regulatory frameworks.
The development of Citi Token Services is part of our journey to deliver real-time, always-on, next generation transaction banking services to our institutional clients.
This development goes hand-in-hand with our industry leading work on the Regulated Liability Network to create interoperable digital asset solutions on a multi-bank basis.
Citi Token Services For Trade
Citi worked with Maersk and a canal authority to digitize a solution that serves the same purpose as bank guarantees and letters of credit in the trade finance ecosystem. The pilot demonstrated programmable transfer of tokenized deposits that provided instant payments to service providers via smart contracts.
Marie-Laure Martin, Regional Treasury Manager for the Americas at Maersk, said,
We are pleased to have collaborated with Citi in the successful test pilots for the guarantee solution using digitized tokens and smart contracts. The innovative solution has promising applications for trade finance.
The technology used in the pilot provided a completely digital process to both buyers and sellers with instant payment capabilities, which is expected to reduce transaction processing times from days to minutes.
Citi Token Services For Cash
Citi Token Services has also been applied to a global cash management pilot, enabling clients to transfer liquidity between Citi branches on a 24/7 basis.
Ryan Rugg, Global Head of Digital Assets at Citi Treasury and Trade Solutions said,
Citi Token Services provides corporate treasurers with a new tool to manage global liquidity on a just-in-time, programmable basis. Frictions related to cut off times and gaps in the service window will be reduced. Our solutions within the Citi network are complemented by inclusive and open industry collaboration on initiatives like the Regulated Liability Network.
We are excited about both the potential for shared ledger technology to update Citi services, and the broader financial system in partnership with regulators and industry peers.
Compliant, Integrated And Seamless Technology Solutions
The private/permissioned blockchain technology used is owned and managed by Citi and clients will not be required to host a blockchain node to access the services.
Citi continues to develop digital asset solutions, in line with its goals and risk appetite, using a unified set of shared technology capabilities and a common strategic approach. These innovative solutions enhance Citi’s products and services including digital money, trade, securities, custody, asset servicing and collateral mobility.
Citi Treasury and Trade Solutions (TTS) helps enable our clients’ success by providing an integrated suite of innovative and tailored cash management and trade finance services to multinational corporations, financial institutions, and public sector organizations across the globe. Based on the foundation of the industry’s largest proprietary network with banking licenses in over 90 countries and globally integrated technology platforms, TTS continues to lead the way in offering a comprehensive range of digitally enabled treasury, trade, and liquidity management solutions.
Other megabanks have indicated that they will soon rollout something similar. Coin Telegraph noted in an article, ‘JPMorgan is also reportedly exploring the use of deposit tokens. That technology was pioneered in Project Guardian, launched in May 2022 by the Monetary Authority of Singapore, in which JPMorgan participated.’
As explained in a video report from Lena Petrova, CPA, citing other reports, Citi tested their new system with other world banks and the Federal Reserve, and found now there were no issues in converting the physical deposits into a digital dollar that then can be instantly transferred. This action indicates that the prospect of a CBDC is much father along than the Federal Reserve had led the public to believe.
AUTHOR COMMENTARY
This is major news that will get little to no press and will be swept under the rug, but it again emphasizes why I continue to warn people that they need to de-bank. This move represents that Citi, and obviously the other major players as well, can now readily and openly convert your dollar bills into a digital asset; and therefore means physical tender will start to incrementally disappear from the money supply and will be transformed into a solely a digitized asset on the blockchain.
This is clearly a move to further the CBDC agenda, there is no other way to look at it.
Thorns and snares are in the way of the froward: he that doth keep his soul shall be far from them.
Proverbs 22:5
[7] Who goeth a warfare any time at his own charges? who planteth a vineyard, and eateth not of the fruit thereof? or who feedeth a flock, and eateth not of the milk of the flock? [8] Say I these things as a man? or saith not the law the same also? [9] For it is written in the law of Moses, Thou shalt not muzzle the mouth of the ox that treadeth out the corn. Doth God take care for oxen? [10] Or saith he it altogether for our sakes? For our sakes, no doubt, this is written: that he that ploweth should plow in hope; and that he that thresheth in hope should be partaker of his hope. (1 Corinthians 9:7-10).
The WinePress needs your support! If God has laid it on your heart to want to contribute, please prayerfully consider donating to this ministry. If you cannot gift a monetary donation, then please donate your fervent prayers to keep this ministry going! Thank you and may God bless you.
Great website! I am loving it!! Will come back again. I am taking your feeds also.
You are a very smart person!
hi!,I love your writing so a lot! percentage we be in contact extra about your article on AOL? I need a specialist on this house to solve my problem. Maybe that is you! Taking a look ahead to look you.
I envy your piece of work, appreciate it for all the interesting blog posts.
Outstanding post, you have pointed out some great points, I too conceive this s a very wonderful website.
Very nice post and straight to the point. I am not sure if this is really the best place to ask but do you folks have any ideea where to employ some professional writers? Thanks 🙂
Well I sincerely enjoyed studying it. This article offered by you is very practical for proper planning.
obviously like your web-site but you need to take a look at the spelling on quite a few of your posts. Several of them are rife with spelling problems and I in finding it very troublesome to tell the reality on the other hand I?¦ll definitely come back again.
Great write-up, I’m regular visitor of one’s web site, maintain up the excellent operate, and It is going to be a regular visitor for a lengthy time.
Thank you for any other informative site. The place else may I am getting that kind of info written in such a perfect means? I have a challenge that I’m simply now running on, and I have been on the look out for such info.
I am glad to be one of many visitors on this outstanding website (:, thanks for posting.
Magnificent beat ! I would like to apprentice even as you amend your site, how can i subscribe for a weblog web site? The account aided me a appropriate deal. I had been tiny bit familiar of this your broadcast provided shiny transparent concept
Its like you read my mind! You seem to know a lot about this, like you wrote the book in it or something. I think that you could do with some pics to drive the message home a bit, but instead of that, this is fantastic blog. A fantastic read. I’ll certainly be back.
I believe that is one of the most vital information for me. And i am satisfied reading your article. But wanna statement on few normal things, The website style is ideal, the articles is in point of fact great : D. Just right activity, cheers
I likewise conceive hence, perfectly pent post! .
I have recently started a blog, the information you offer on this website has helped me tremendously. Thanks for all of your time & work.
I think this site contains some rattling excellent information for everyone : D.
What’s Happening i’m new to this, I stumbled upon this I have found It absolutely useful and it has helped me out loads. I hope to contribute & assist other users like its helped me. Good job.
We stumbled over here by a different page and thought I should check things out. I like what I see so now i’m following you. Look forward to looking at your web page repeatedly.
Yay google is my king assisted me to find this great web site! .
I truly appreciate this post. I¦ve been looking all over for this! Thank goodness I found it on Bing. You’ve made my day! Thx again
You have mentioned very interesting points! ps nice website.
I truly enjoy examining on this website , it contains great content. “He who sees the truth, let him proclaim it, without asking who is for it or who is against it.” by Henry George.
Thank you for any other informative web site. Where else may just I get that kind of info written in such a perfect means? I have a mission that I am just now operating on, and I have been on the glance out for such information.
This is the right blog for anyone who wants to find out about this topic. You realize so much its almost hard to argue with you (not that I actually would want…HaHa). You definitely put a new spin on a topic thats been written about for years. Great stuff, just great!
It is really a nice and useful piece of information. I?¦m happy that you just shared this helpful information with us. Please keep us up to date like this. Thanks for sharing.
you have a great blog here! would you like to make some invite posts on my blog?
Very interesting subject, regards for posting. “If you have both feet planted on level ground, then the university has failed you.” by Robert F. Goheen.
Valuable information. Lucky me I found your website by accident, and I’m shocked why this accident didn’t happened earlier! I bookmarked it.
My coder is trying to convince me to move to .net from PHP. I have always disliked the idea because of the costs. But he’s tryiong none the less. I’ve been using WordPress on numerous websites for about a year and am concerned about switching to another platform. I have heard very good things about blogengine.net. Is there a way I can import all my wordpress posts into it? Any kind of help would be really appreciated!
I’ve been absent for a while, but now I remember why I used to love this site. Thank you, I’ll try and check back more often. How frequently you update your site?
Perfectly composed articles, regards for information .
I have been absent for a while, but now I remember why I used to love this site. Thank you, I?¦ll try and check back more often. How frequently you update your website?
Hiya, I’m really glad I’ve found this information. Nowadays bloggers publish only about gossips and internet and this is really irritating. A good blog with interesting content, that’s what I need. Thank you for keeping this web-site, I’ll be visiting it. Do you do newsletters? Can not find it.
Whats up very nice blog!! Man .. Excellent .. Amazing .. I will bookmark your site and take the feeds alsoKI am glad to seek out so many helpful info here in the put up, we’d like develop extra techniques on this regard, thank you for sharing. . . . . .
Wohh exactly what I was looking for, regards for posting.
Hola! I’ve been following your site for some time now and finally got the bravery to go ahead and give you a shout out from Humble Texas! Just wanted to say keep up the excellent job!
I wish to show some appreciation to you for rescuing me from this instance. As a result of surfing through the world-wide-web and coming across proposals that were not beneficial, I assumed my life was over. Existing devoid of the solutions to the difficulties you’ve solved all through your entire blog post is a critical case, and the kind that could have negatively damaged my career if I had not come across your web blog. Your actual competence and kindness in handling a lot of stuff was vital. I don’t know what I would have done if I had not encountered such a thing like this. I can also at this point look forward to my future. Thanks so much for your reliable and sensible help. I won’t think twice to endorse your blog post to anybody who should get guidelines on this problem.
Very interesting details you have observed, appreciate it for posting.
Wow, marvelous blog layout! How long have you been blogging for? you made blogging look easy. The overall look of your web site is great, let alone the content!
Having read this I thought it was very informative. I appreciate you taking the time and effort to put this article together. I once again find myself spending way to much time both reading and commenting. But so what, it was still worth it!
My brother recommended I might like this web site. He was once totally right. This publish actually made my day. You can not consider just how a lot time I had spent for this info! Thanks!
An impressive share, I simply given this onto a colleague who was doing somewhat evaluation on this. And he actually purchased me breakfast as a result of I discovered it for him.. smile. So let me reword that: Thnx for the deal with! But yeah Thnkx for spending the time to discuss this, I feel strongly about it and love studying extra on this topic. If potential, as you develop into experience, would you mind updating your blog with more details? It is extremely helpful for me. Massive thumb up for this weblog post!
Wow! This can be one particular of the most helpful blogs We’ve ever arrive across on this subject. Basically Excellent. I am also a specialist in this topic so I can understand your hard work.
Hello my friend! I wish to say that this article is awesome, nice written and include approximately all vital infos. I would like to see extra posts like this .
After study a few of the blog posts on your website now, and I truly like your way of blogging. I bookmarked it to my bookmark website list and will be checking back soon. Pls check out my web site as well and let me know what you think.
Heya i am for the first time here. I came across this board and I find It really useful & it helped me out a lot. I hope to give something back and aid others like you helped me.
Very interesting details you have remarked, appreciate it for posting. “She had an unequalled gift… of squeezing big mistakes into small opportunities.” by Henry James.
Hello I am so glad I found your website, I really found you by accident, while I was looking on Aol for something else, Nonetheless I am here now and would just like to say many thanks for a tremendous post and a all round enjoyable blog (I also love the theme/design), I don’t have time to read it all at the minute but I have bookmarked it and also added your RSS feeds, so when I have time I will be back to read much more, Please do keep up the excellent work.
Hi! This is my first visit to your blog! We are a team of volunteers and starting a new initiative in a community in the same niche. Your blog provided us useful information to work on. You have done a outstanding job!