Citigroup succeeds in blockchain equity: Citigroup has successfully finished a test to see if it’s possible to represent a private equity fund as a digital token using blockchain technology.
Citigroup worked with Wellington Management and WisdomTree and told Bloomberg that it has successfully shown it can create and handle digital versions of private equity funds safely for its customers, following the rules and working with the bank’s existing systems.
Citigroup and other big banks like JPMorgan Chase & Co. are looking into how blockchain can make their systems better and more up-to-date. They are interested in blockchain because it can make transactions clearer and faster.
The results of this test will help Citigroup decide whether to launch new services in this area soon.
This project is a step in Citigroup’s bigger plan to work with digital assets. This was shown when they started a service in September that changes customer deposits into digital tokens for worldwide payments.
The growth is happening because banks are getting more interested in cryptocurrencies again. This interest is due to the approval of Bitcoin ETFs and a big increase in Bitcoin’s price, which is the highest it’s been in more than two years.
