Outside Source
Citigroup has successfully completed a trial testing the potential for tokenizing a private equity fund using blockchain.
In collaboration with Wellington Management and WisdomTree, Citigroup told Bloomberg that it has proven the feasibility of issuing and safely managing tokenized private equity funds for clients within a regulated framework, ensuring compatibility with the bank’s current systems.
Citigroup, along with other financial giants such as JPMorgan Chase & Co., have been investigating the potential of blockchain to modernize and improve its operational infrastructure, attracted by the technology’s promise of enhanced transparency and immediate transaction settlements.
The outcomes of this proof of concept will guide Citigroup in deciding on introducing new services in this domain, with strategic decisions expected shortly.
This initiative is part of Citigroup’s broader efforts to embrace digital assets, evidenced by the launch of a service in September that converts customer deposits into tokens for global transactions.
The development occurs as the banking industry shows a renewed interest in the crypto market, spurred by the approval of Bitcoin ETFs and a surge in Bitcoin prices, reaching its highest peak in over two years.
This article first appeared at crypto.news
