Currently many tokenized deposit solutions only work between customers of the same bank, rather than for interbank payments. Citi has partially addressed this drawback. The bank has integrated its blockchain-based Citi Token Services with its 24/7 USD Clearing solution, which runs on conventional technology. This enables Citi customers to initiate payments to any of the 250 banks in 40 jurisdictions that use 24/7 USD Clearing.
However, it’s up to the receiving banks whether they immediately credit the incoming funds. Initially the solution is only available to select US and UK clients, with plans to expand the scope.
“Our clients demand financial solutions that operate at the speed of their business. This industry-first integration significantly reduces friction in payments and liquidity, offering unprecedented control and flexibility, especially compared to other systems that can burden clients with deep technical and incremental risk management work,” said Stephen Randall, Head of Liquidity Management Services, Citi. “Our clients are excited about this development, which underscores Citi’s leadership in innovation.”
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