Citibank, alongside Wellington Management and WisdomTree, is delving into tokenized securities on the blockchain to explore the wider adoption of distributed ledger technology in finance.
This experimental phase involves tokenizing a private equity fund on Avalanche, a blockchain platform. The initiative aims to regulate token distribution and explore collateral usage, presenting a roadmap for institutional blockchain adoption.
Citi conducted a trial involving token transfers, secondary trading, and collateralized lending to explore blockchain’s potential. The proof-of-concept demonstrated how smart contracts could enhance automation and compliance for investors and issuers.
Nisha Surendran, Citi Digital Assets’ lead, highlighted the aim of introducing new operational efficiencies through tokenizing private assets.
Additionally, Citibank’s recent involvement in Bitcoin Depository Receipts and BondbloX Bond Exchange underscores its commitment to blockchain innovation.
Industry leaders like Franklin Templeton CEO Jenny Johnson praise this move, signaling a shift towards optimism regarding blockchain and cryptocurrencies.
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