Citi Develops Blockchain FX Solution

Last updated 04/30/2024 by

SuperMoney Team

Edited by

Lacey Stark

Fact checked by

Andrew Latham

Summary:

Citi has unveiled a groundbreaking application utilizing blockchain technology for bilateral spot foreign exchange (FX) trades under the Monetary Authority of Singapore’s Project Guardian initiative. The innovative solution, part of Citi’s commitment to advancing global trade capabilities, offers real-time streaming of price quotes and transparent, secure record-keeping on a blockchain. Read on to explore the key features, collaborative efforts, and potential impacts of Citi’s Blockchain FX Solution.

Citi’s blockchain FX solution: Revolutionizing global trade

Citi, in collaboration with the Monetary Authority of Singapore (MAS) and industry partners, has introduced a cutting-edge application leveraging blockchain infrastructure for bilateral spot foreign-exchange (FX) trades. Developed under the Project Guardian initiative, the solution represents a pivotal step towards redefining how financial institutions approach global trade.

Key features of Citi’s blockchain FX solution

Under the current phase of the application, Citi tested spot FX for USD/SGD, demonstrating the versatility of the underlying solution for any fiat currency pair. The on-chain solution enables real-time streaming of price quotes and records trade executions on a blockchain. This ensures an immutable, cryptographically secure record-keeping of trade data while maintaining compliance with institutional practices and regulatory requirements.

Sam Hewson, head of FX sales at Citi, emphasizes this strategic move.

Collaboration and industry impact

Citi collaborated with industry leaders T. Rowe Price Associates, Inc. and Fidelity International on this innovative application. Blue Macellari, head of digital asset strategy at T. Rowe Price, highlighted the importance of user-friendly institutional-grade execution, considering it a crucial step towards unlocking the full potential of a blockchain-based trading lifecycle.

“Distributed ledger technology will revolutionize financial systems over time and has the potential to democratize access to financial services and alternative investments,” adds Emma Pecenicic, head of digital propositions and partnerships at Fidelity International.

“As a global asset manager, we are very keen to engage with partners like Citi to explore technological innovations like its Blockchain FX Solution, to understand the efficiencies it can bring to our processes and ultimately for the benefit of investors.”

The technology behind: Avalanche Blockchain

For the current phase, Citi utilized a private instance of the Avalanche blockchain to capture price quotes and trade confirmations specific to each counterparty. This strategic choice emphasizes the commitment to secure, efficient, and scalable blockchain technology.

Pros and Cons

FAQs

What is Citi’s blockchain FX solution?

Citi’s Blockchain FX Solution is an innovative application that uses blockchain infrastructure for bilateral spot foreign-exchange trades, providing real-time streaming of price quotes and secure record-keeping on a blockchain.

Under which initiative was the application developed?

The application was developed under the Monetary Authority of Singapore’s Project Guardian initiative, a collaborative effort with the financial industry to test the feasibility of applications in asset tokenization and DeFi.

Key takeaways

Citi’s Blockchain FX Solution revolutionizes global trade with real-time streaming of price quotes.
The application, developed under Project Guardian, showcases collaboration with industry leaders for scalability.
A private instance of the Avalanche blockchain was used for the current phase.

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