Tokenised deposits are quickly gaining momentum across the traditional finance globe, and Citi has expanded its multi-currency service to support real-time settlements.
Citi has announced the expansion of its tokenised deposit offering Citi Token Services (CTS) with the integration of Euro transactions.
The US bank has also extended its global footprint through an expansion of its pre-existing presence in Ireland by launching a liquidity centre.
The addition of Euro real-time, cross-border payments to CTS expands the offering to institutional clients in Europe, as well as being accessible to existing markets where CTS is available, including the US, UK, Singapore and Hong Kong.
This will allow clients to transfer both Euros and USD at any time regardless of time zones to their accounts, as well as to Citi branches which facilitates CTS.
“Here in Europe, we’re seeing strong client demand for solutions that combine the advantages of tokenisation with the scale, security and connectivity of Citi’s global network,” said Peter Jameson, Head of Services, Europe, at Citi.
“This milestone reflects that demand and reinforces Citi’s commitment to facilitating clients’ cross border money movement with greater speed and efficiency.”
Citi’s digital asset strategy grows
CTS for Cash has processed billions of dollars in transactions since it was launched last year. The service leverages blockchain technology to mitigate traditional cut-off times and geographical restrictions, while offering instant liquidity.
Citi stated this is the next step in its digital asset strategy building off the integration of CTS within Citi’s 24/7 USD clearing platform. This will enable clients to move money without the constraints of time zones and currencies, aiming to be more cost-effective than other cross-border solutions.
“This expansion highlights our ongoing commitment to continuous innovation in order to meet our clients’ 24/7, global needs,” said Stephen Randall, Global Head of Liquidity Management Services at Citi.
“By integrating tokenised deposits with Citi’s existing cash management infrastructure, we’re enabling clients to manage liquidity more efficiently across time zones and currencies, with the connectivity they expect.”
Tokenised Deposits: new solution, no global standard
Citi is just one of many global banks who have focused on developing strategies to offer multi-currency tokenised offerings to their customers.
Banks such as Citi and JP Morgan use a single bank ledger to enable real-time liquidity and cross-border settlement of funds via blockchain technology. While these two US banks have opted to build out their tokenised deposit offerings in-house, this isn’t a global standard.
In September, several leading UK banks, including Barclays, NatWest, HSBC and Lloyds, announced they would collaborate on developing the country’s first live pilot for tokenised deposits using the pound.
Running until mid-2026, the pilot will test person-to-person payments via online marketplaces, remortgaging processes and digital asset settlement.
Meanwhile, Deutsche Bank, Commerzbank, and other German banks are working alongside one another to develop proof-of-concepts for commercial bank money tokens and if they can support multi-curency settlements.
Furthermore, the Bank of International Settlements’ (BIS) Project Agorá is working alongside 41 private sector financial institutions across the world to develop use cases on how tokenised deposits can be settled with wholesale central bank digital currencies (CBDCs).
