Home Forex Citi and MAS Join Forces for Blockchain-Powered FX Trading Application

Citi and MAS Join Forces for Blockchain-Powered FX Trading Application

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Citi
has recently introduced an application leveraging blockchain technology to
facilitate bilateral spot foreign exchange (FX) trades. The application, was developed as part of Project Guardian, a joint initiative by the Monetary
Authority of Singapore and the financial industry.

The
initial phase of the application, which focused on testing spot FX for USD/SGD,
demonstrated the potential for application across various fiat currency pairs.
Currently not available to clients, Citi’s on-chain solution integrates
real-time streaming of price quotes with the secure recording of trade
executions on a blockchain.

Sam Hewson, Head of FX Sales, Citi, Source: LinkedIn

This
ensures cryptographically secure record-keeping of trade data, aligning with
institutional practices and regulatory requirements. Access to underlying trade
details is restricted to counterparties involved in a quote or trade.

Sam
Hewson, the Head of FX Sales at Citi, emphasized the
broader strategy: “We are taking steps towards building
foundational capabilities to offer liquidity, pricing and risk management to
our global clients wherever they choose to trade – be it on traditional rails
or on blockchain.”

Blue Macellari, Head of Digital Asset Strategy, T. Rowe Price Associates, Inc, Source: LinkedIn

The
application explores the use of oracles for bilateral messaging through a
request for a streaming mechanism. This enables best execution analysis through
real-time post-trade analysis on a unified platform. Citi collaborated with T.
Rowe Price Associates, Inc, and Fidelity International on the development of
the application under the Project Guardian initiative.

Blue
Macellari, the Head of Digital Asset Strategy at T. Rowe Price Associates, Inc,
highlighted the significance of user-friendly institutional-grade execution. She
stated: “This application is an important first step towards unlocking the
value of a full end-to-end blockchain-based trading lifecycle.”

Emma
Pecenicic, the Head of Digital Propositions and Partnerships for APACxJ Distribution at Fidelity International, expressed the global asset manager’s eagerness to
engage in technological innovations like Citi’s Blockchain FX Solution. She
believes that distributed ledger technology has the potential to develop
financial systems over time, democratizing access to financial services and
alternative investments.

Avalanche
Captures Counterparty-Specific Data for Citi

The
private permissioned instance of the Avalanche blockchain was employed in the
current phase of the application. This blockchain captured
price quotes and trade confirmations specific to each counterparty. The
development aligns with MAS’s Project Guardian, focusing on testing
applications in asset tokenization and decentralized finance while managing associated risks to financial stability and integrity.

Citi
has recently introduced an application leveraging blockchain technology to
facilitate bilateral spot foreign exchange (FX) trades. The application, was developed as part of Project Guardian, a joint initiative by the Monetary
Authority of Singapore and the financial industry.

The
initial phase of the application, which focused on testing spot FX for USD/SGD,
demonstrated the potential for application across various fiat currency pairs.
Currently not available to clients, Citi’s on-chain solution integrates
real-time streaming of price quotes with the secure recording of trade
executions on a blockchain.

Sam Hewson, Head of FX Sales, Citi, Source: LinkedIn

This
ensures cryptographically secure record-keeping of trade data, aligning with
institutional practices and regulatory requirements. Access to underlying trade
details is restricted to counterparties involved in a quote or trade.

Sam
Hewson, the Head of FX Sales at Citi, emphasized the
broader strategy: “We are taking steps towards building
foundational capabilities to offer liquidity, pricing and risk management to
our global clients wherever they choose to trade – be it on traditional rails
or on blockchain.”

Blue Macellari, Head of Digital Asset Strategy, T. Rowe Price Associates, Inc, Source: LinkedIn

The
application explores the use of oracles for bilateral messaging through a
request for a streaming mechanism. This enables best execution analysis through
real-time post-trade analysis on a unified platform. Citi collaborated with T.
Rowe Price Associates, Inc, and Fidelity International on the development of
the application under the Project Guardian initiative.

Blue
Macellari, the Head of Digital Asset Strategy at T. Rowe Price Associates, Inc,
highlighted the significance of user-friendly institutional-grade execution. She
stated: “This application is an important first step towards unlocking the
value of a full end-to-end blockchain-based trading lifecycle.”

Emma
Pecenicic, the Head of Digital Propositions and Partnerships for APACxJ Distribution at Fidelity International, expressed the global asset manager’s eagerness to
engage in technological innovations like Citi’s Blockchain FX Solution. She
believes that distributed ledger technology has the potential to develop
financial systems over time, democratizing access to financial services and
alternative investments.

Avalanche
Captures Counterparty-Specific Data for Citi

The
private permissioned instance of the Avalanche blockchain was employed in the
current phase of the application. This blockchain captured
price quotes and trade confirmations specific to each counterparty. The
development aligns with MAS’s Project Guardian, focusing on testing
applications in asset tokenization and decentralized finance while managing associated risks to financial stability and integrity.

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