Citi’s token service lets Taiwan firms shift cash any time

• By Crystal Hsu / Staff reporter

• • Add TT as Preferred Source

  • 

  • 

  • 

Taiwanese companies with overseas operations can use Citigroup Inc’s digital payment service to move funds between eligible Citi accounts around the clock, helping them manage cash across different time zones without being constrained by conventional banking hours, Citi Taiwan executives said yesterday.

Citi Token Services is already operating in seven markets — the US, UK, Hong Kong, Singapore, Ireland, Japan and the United Arab Emirates — and supports US dollar and euro transactions.

Taiwan is not among the markets where the service operates, but local clients with Citi accounts in those markets can use it for liquidity and other operational needs, Citi country officer for Taiwan Christie Chang (張聖心) said at a media briefing in Taipei.

Citi Taiwan executives pose for an undated handout photo. They are, from left: Citi Taiwan head of treasury and trade solutions Vivien Cheng, Citi country officer for Taiwan and Citibank Taiwan chairperson Christie Chang, Citibank Taiwan general manager and head of markets Esther Feng and head of securities services Hsiao-Chi Wang.

Photo courtesy of Citi Taiwan

The service allows companies to transfer funds between eligible Citi accounts almost instantly, including on weekends and public holidays. Hundreds of clients are using the system, with about US$1 billion in tokenized deposits moving through it each day, Citi Taiwan head of treasury and trade solutions Vivien Cheng (程雯) said.

For Taiwanese companies with factories, suppliers or customers in different markets, the service can reduce the need to wait for banks to reopen when moving funds between regional operations, Cheng said.

Citi Token Services uses blockchain technology to represent bank deposits digitally and transfer them between eligible accounts. The funds remain within Citi’s banking network and are deposits held with the bank, rather than cryptocurrency, Cheng said.

Unlike some other foreign banks, Citi does not require customers to set up a separate digital account to use its blockchain-based payment service, allowing them to use their existing Citi accounts, Cheng said, adding that the service is increasingly used by Asian e-commerce providers doing business in the US.

Citi is also working with cryptocurrency exchange Coinbase Global Inc to connect traditional banking services with stablecoins, digital tokens designed to maintain a stable value against currencies such as the US dollar.

Coinbase has selected Citi’s Virtual Account Wallet to support its Coinbase Virtual Accounts, which provide bank-account-like functions for receiving, holding and making payments, Cheng said. Traditional currency received through the service can be automatically converted into stablecoins.

The service, still emerging in Taiwan, is particularly useful for companies operating in markets with volatile currencies, where sudden exchange-rate swings can quickly erode profit margins, Cheng said.

Citi Taiwan said it has seen double-digit growth across all of its businesses so far this year and expects to remain profitable for the rest of the year and beyond.