Citigroup achieves success in trial of equity tokenization using blockchain technology
Citigroup has successfully concluded a trial that tested the potential use of blockchain technology to tokenize a private equity fund. In collaboration with Wellington Management and WisdomTree, Citigroup confirmed to Bloomberg that it has demonstrated the feasibility of issuing and securely managing tokenized private equity funds for clients within a regulated framework. This ensures compatibility with the bank’s existing systems.
Citigroup, like other major financial institutions such as JPMorgan Chase & Co., has been exploring the potential of blockchain to modernize and enhance its operational infrastructure. The technology’s promise of improved transparency and immediate transaction settlements has attracted the attention of these financial giants.
The results of this proof of concept will serve as a guide for Citigroup as it considers the introduction of new services in this area. Strategic decisions are expected to be made in the near future.
This initiative is part of Citigroup’s broader efforts to embrace digital assets, as evidenced by the launch of a service in September that converts customer deposits into tokens for global transactions.
The development comes at a time when the banking industry is showing renewed interest in the cryptocurrency market, driven by the approval of Bitcoin ETFs and a significant increase in Bitcoin prices, reaching its highest point in over two years.
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