Citigroup launched a tokenized deposit product for ultra-high-net-worth clients in its Wealth Management division, becoming the first U.S. global systemically important bank to offer blockchain-based deposits in a production environment. The product went live Monday for clients with $25 million or more in assets under management.
Tokenized deposits function identically to traditional deposits from a regulatory and insurance perspective — they are FDIC-insured liabilities of Citibank N.A. — but operate on a permissioned distributed ledger that enables 24/7 programmable transfers, instant settlement between Citi accounts, and atomic delivery-versus-payment for securities transactions.