Bank working hours and currency conversion constraints are becoming less of a deterrent for cross-border payments. Citi has broadened the operating capabilities of its Citi Token Services (CTS) platform to include euro transactions, and launched a new facility in Dublin.
Real-time, 24/7 U.S. dollar-euro payment processing capabilities are available to Citi’s corporate and institutional clients, the bank said in a press release Friday (Nov. 7).
Using a private, permissioned blockchain, Citi Token Services will facilitate real-time liquidity and payment functionalities by removing the constraints of cutoff times and geography typical in today’s commercial banking systems, the release said. The platform is already live in New York, London, Singapore and Hong Kong and the platform’s moving into Europe indicates market growth.
This development comes after Citi’s previous launch of what it deemed an industry-first 24/7 U.S. dollar clearing platform integration.
“Here in Europe, we have a very strong client demand for solutions that bring together tokenization’s benefits with the scale, security and connectivity of Citi’s global network,” Peter Jameson, who works in Dublin as head of services in Europe for Citi, said.
Citi says it operates in 180 countries. “Dublin-based clients can now transfer 1 USD and euros 24 hours a day into their accounts and third-party beneficiaries at Citi branches that are already live on Citi Token Services globally, overcoming the constraints of traditional banking hours and aiding corporate liquidity optimization,” the release said.
“With Citi’s integration of tokenized deposits with its existing infrastructure, clients will be able to better manage their liquidity risks more easily across time zones and currencies,” said Stephen Randall, Global Head of Liquidity Management Services at Citi.
As reported by PYMNTS, EU banks are increasingly turning to the U.S. dollar for funding, above 13 percent of their total last year. So, one possible rationale for Citi’s growth is also removing risks and operating problems associated with eurodollar liquidity needs.
Proposing a system of blockchain-powered real-time cross-border payments that works when bank doors are closed, or dollar liquidity is stretched by global market turmoil, represents an advantage in the always-on economy.
