Today, Citi has announced that it has successfully completed a
proof of concept on tokenization of private funds along with
Wellington Management and WisdomTree.
The proof of concept, which was conducted on the Avalanche
Spruce institutional test Subnet, found that smart-contract
capabilities could deliver new functionality and operational
efficiencies, which are currently unavailable with traditional
assets. These new functionalities could enable buy- and sell-side
institutions to engage with distributed ledger infrastructure in a
low-risk, low barrier-to-entry manner that is consistent with
regulations.
Private markets, although a $10 trillion asset class1, are
characterized by an infrastructure that is complex and manual, with
a lack of standardization and transparency, leading to inefficient
distribution and operations. There are often complex legal and
regulatory restrictions related to private assets.
With ABN AMRO simulating the role of a traditional investor, the
proof of concept tested the tokenization of a Wellington issued
private equity fund by bringing it onto a distributed ledger
technology (DLT) network. The underlying fund distribution rules
were encoded into the smart contract and embedded in the token
transferred to hypothetical WisdomTree clients. The proof of
concept demonstrated how smart contracts could be used to enable
greater automation and potentially create an enhanced compliance
and control environment for issuers, distributors, and
investors.
As part of the experiment, Citi also evaluated multiple
scenarios of transfers using smart contracts relying on simulated
identity credentials issued by WisdomTree and using a private fund
token as collateral in an automated lending contract with DTCC
Digital Assets (formerly Securrency).
By evaluating relevant technical, legal and operational
frameworks needed to bring traditional assets on to a digital
platform, Citi explored how to support clients issuing and
accessing tokenized private assets in a controlled and scalable
manner, while ensuring interoperability with the traditional
ecosystem.
“Smart contracts and blockchain technology can enable enhanced
rule-enforcement at an infrastructure-level, allowing data and
workflows to travel with the asset. We believe that by testing the
tokenization of private assets, we are exploring the feasibility to
open-up new operating models and create efficiencies for the
broader market,” stated Nisha Surendran, Emerging Solutions Lead
for Citi Digital Assets.
“The Avalanche Spruce test network has proven to be an ample
technical sandbox environment for coming together with partners and
exploring the potential of blockchain technology within our
industry. We look forward to continuing to collaborate with Citi,
strong, long-term partners who are providing meaningful
developments and thought leadership in the blockchain space,” said
Mark Garabedian, Director, Digital Assets & Tokenization
Strategy, Wellington Management.
Maredith Hannon Sapp, Head of Business Development, Digital
Assets, at WisdomTree said, “We believe blockchain-enabled finance
is the future of the industry, and This Proof-of-Concept showcases
the ability to explore the transferability of tokenized funds and
related compliance in different markets. This will inform future
in-production use cases of how blockchain technology and smart
contracts can be used in on-chain transactions.”
Citi continues to develop digital asset solutions, in line with
its goals and risk appetite, using a unified set of shared
technology capabilities and a common strategic approach. These
innovative solutions enhance Citi’s products and services including
digital money, trade, securities, custody, asset servicing and
collateral mobility.
About Citi
Citi is a preeminent banking partner for institutions with
cross-border needs, a global leader in wealth management and a
valued personal bank in its home market of the United States. Citi
does business in nearly 160 countries and jurisdictions, providing
corporations, governments, investors, institutions and individuals
with a broad range of financial products and services.
Additional information may be found at www.citigroup.com |
Twitter: @Citi | LinkedIn: www.linkedin.com/company/citi | YouTube:
www.youtube.com/citi | Facebook: www.facebook.com/citi
About Wellington Management
Wellington Management is one of the world’s largest independent
investment management firms, serving as a trusted adviser to over
2,500 clients in more than 60 countries. The firm manages more than
US$1.1 trillion for pensions, endowments and foundations, insurers,
family offices, fund sponsors, global wealth managers, and other
clients. Wellington aspires to provide excellent service to clients
through a unique combination of independence enabled by its
distinctive private partnership model, diverse perspectives through
its unified, multi-asset investment platform, and relentless
curiosity and intellectual rigor fostered by its enduring
collaborative culture.
For more information visit www.wellington.com.
About WisdomTree
WisdomTree is a global financial innovator, offering a
well-diversified suite of exchange-traded products (ETPs), models,
solutions and products leveraging blockchain-enabled technology. We
empower investors and consumers to shape their future and support
financial professionals to better serve their clients and grow
their businesses. WisdomTree is leveraging the latest financial
infrastructure to create products that provide access, transparency
and an enhanced user experience. Building on our heritage of
innovation, we are also developing and have launched
next-generation digital products, services and structures,
including digital or blockchain-enabled mutual funds and tokenized
assets, as well as our blockchain-native digital wallet, WisdomTree
Prime™.
WisdomTree currently has approximately $101.2 billion in assets
under management globally.
For more information about WisdomTree, visit:
https://www.wisdomtree.com.
Please visit us on X, formerly known as Twitter, at
@WisdomTreeNews.
About Avalanche
Avalanche is a smart contracts platform that scales infinitely
and regularly finalizes transactions in less than one second. Its
novel consensus protocol, Subnet infrastructure, and HyperSDK
toolkit enable Web3 developers to easily launch powerful, custom
blockchain solutions. Build anything you want, any way you want, on
the eco-friendly blockchain designed for Web3 devs.
Website | Whitepapers | Twitter | Discord | GitHub |
Documentation | Telegram | Facebook | LinkedIn | Reddit |
YouTube
About DTCC
With 50 years of experience, DTCC is the premier post-trade
market infrastructure for the global financial services industry.
From 20 locations around the world, DTCC, through its subsidiaries,
automates, centralizes, and standardizes the processing of
financial transactions, mitigating risk, increasing transparency,
enhancing performance and driving efficiency for thousands of
broker/dealers, custodian banks and asset managers. Industry owned
and governed, the firm innovates purposefully, simplifying the
complexities of clearing, settlement, asset servicing, transaction
processing, trade reporting and data services across asset classes
and bringing increased security, enhanced resilience and soundness
to financial markets. To learn more, visit www.dtcc.com.
About DTCC Digital Assets
DTCC Digital Assets provides institutional-grade infrastructure
and products to facilitate end-to-end lifecycle processing for
digital assets. Its innovative digital infrastructure enables
market participants to unlock the power of institutional DeFi by
accessing secure, efficient, and compliant capital markets. DTCC
Digital Assets’ blockchain agnostic solutions allow for
near-real-time payments and blockchain interoperability and are
designed to increase global liquidity. In addition, its technology
will ultimately underpin the development of DTCC’s enterprise
digital asset infrastructure.
1 Citi BAS & Broadridge Private Capital Analysis
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240214190058/en/
Mikel Jones mikel.jones@citi.com +1 561 797 5577
Citigroup (NYSE:C)
Gráfico Histórico do Ativo
De Jun 2024 até Jul 2024
Citigroup (NYSE:C)
Gráfico Histórico do Ativo
De Jul 2023 até Jul 2024