A look at Citibank's Action: Tokenisation and Cryptocurrency Adoption

[Megamind]

Tokenization is the process of converting traditional assets, such as shares, into digital tokens that can be traded on a blockchain. This offers a number of advantages, including: Increased liquidity, reduced costs, fractional ownership and lots more in the financial world.https://www.bloomberg.com/news/articles/2023-09-18/citi-debuts-token-service-in-latest-foray-into-digital-assets?utm_source=website&utm_medium=share&utm_campaign=copy

According to a statement released on Monday, the service, branded as Citi Token Services, would convert clients' deposits into digital tokens that can be transferred anywhere in the globe. The company's treasury and trade solutions division, which oversees the service, has thus far concentrated on utilising it to enhance cash-management and trade-finance skills. 

The creation of Citi Token Services, according to Shahmir Khaliq, worldwide head of the company's services business, "is part of our journey to deliver real-time, always-on, next generation transaction banking services to our institutional clients."

The initiative is the most recent by a well-known banking behemoth to offer so-called "tokenized deposits," or transferrable digital currency that stands in for a bank's claim. According to the release, Citigroup will utilise a private blockchain that is owned and operated by the bank for its new product. Customers can use the service using the bank's current systems without having to create their own digital wallet.

Citibank's tokenization could help to drive crypto adoption in the following ways:

It will make crypto more accessible to a wider range of investors. By tokenizing shares, Citibank is making it possible for people to invest in crypto even if they don't have a lot of money. This could help to bring new investors into the crypto market.

It will also increase the liquidity of crypto assets. As more and more shares are tokenized, the crypto market will become more liquid. This will make it easier for investors to buy and sell crypto assets, and it will also help to reduce volatility.

It will also help to legitimize crypto. Citibank is one of the most respected financial institutions in the world. Its tokenization of shares is a sign that crypto is becoming more mainstream and that it is a viable investment option.

[BashJasper]

Was that why Citi group closed retail banking operations in Australia, UK and some part of Asia? To tokenize customers' deposit and make it more easier to transact? That's really classy! This will really reduce operational cost and make transactions faster using blockchain. It's a big win for crypto with Citi boasting over 200 million customers spanning more than 160 countries. That's a huge crypto market waiting to blossom! Gradually, I believe other crypto services will be added and more financial will start seeing the need to implement such move just as how Citi group pioneered the adoption of ATM and online banking in the 1970s and 1982 respectively