Citi Perspectives 2024 E-commerce Edition

Keep moving In the coming months and years, McLaughlin is expecting to see some interesting developments around tokenization. One to watch for late 2024, he says, is Bank of Korea’s pilot that is targeting a network of CBDC and commercial bank money tokens. “Market participants are getting proof-of-concept fatigue and now want to build something,” he comments. “And in five years’ time, we’ll have a much clearer picture as to whether this vision of tokenization can be delivered and if we have industry consensus.” Ultimately, most corporate treasurers care about the outcomes and their own objectives more than they do about the tools used to achieve them. If they can manage liquidity 24/7 without friction, and their bank is using a blockchain to enable it, then so be it. Indeed, technology to most is a means to an end, albeit in this case a rather useful and valuable one. But that, notes McLaughlin, “is just as it should be.” First published by Treasury Management International 1 – click for more. 1 https://treasury-management .com/articles/natural-progression/ Originally published by Treasury Management International (TMI) inMay 2024. Tony McLaughlin Head of Emerging Payments and Business Development, Citi Treasury and Trade Solutions A recap on tokenization’s value So, what are some of the game changers that tokenization delivers? • Enables global, 24/7, secure, real-time financial transactions. • Can be applied to any real-world financial asset. • All transactions are settled instantaneously. • Blockchain unambiguously determines token ownership, in real time. • Multi-asset settlement venues are possible. • Simplifies reconciliation. • Enables programmability of payments. • Opens up a much wider domain of functionality and innovation. • Lessens the need for financial intermediaries. | 37 Natural Progression: Why tokenization really could be the next big thing Listen to this article