Citi Completes Tokenization Proof-of-Concept on Solana
Financial institution Citi has successfully completed a proof-of-concept for tokenizing capital markets assets for settlement on the Solana blockchain. The initiative demonstrates continued exploration by major TradFi firms into using public blockchains for core financial services. This follows a broader industry trend of examining tokenization for market infrastructure.
- The specific financial instrument simulated was a tokenized bill of exchange, a type of short-term debt widely used in the estimated $10 trillion global trade finance market. - The proof-of-concept, a partnership with professional services firm PwC, simulated the entire lifecycle of the instrument on the Solana devnet, from issuance and trading to the final settlement in a simulated tokenized US dollar. - This initiative is part of a broader multi-chain exploration for Citi, which previously tested the tokenization of private equity funds on the Avalanche "Spruce" subnet with partners Wellington Management and WisdomTree. - Other major TradFi players are also building on Solana; asset manager Franklin Templeton made its $594 million OnChain U.S. Government Money Market Fund (FOBXX) available on the network. - The move contrasts with JPMorgan's approach, which utilizes its private, permissioned Onyx blockchain for institutional services; Onyx now handles up to $2 billion in daily transactions and has processed over $1 trillion in total. - Solana's technical specifications are a key draw for institutions, with the network reportedly processing approximately three times more daily transactions than Ethereum and its Layer 2 networks combined.
