Citi, a global financial services firm, has announced a partnership with the Monetary Authority of Singapore (MAS) to develop an innovative blockchain-based solution for foreign exchange (FX) transactions. The initiative, part of Project Guardian, aims to enhance the cross-border trading process by providing real-time FX price quotes and recording trade executions for any fiat currency pair on a blockchain.
On Tuesday, under Project Guardian, Citi launched an application that enables real-time spot FX trades, initially with USD/SGD but adaptable to other fiat pairs. This new application provides further depth to the project's capabilities and increases its potential scope of impact in the financial industry.
The new platform is designed to ensure immutable record-keeping and compliance with financial regulations while offering global liquidity, pricing, and risk management. According to Citi, this technology will improve both the pre-trade and execution stages of the trade life cycle. The system leverages oracles for bilateral messaging and supports best execution analysis on a single platform.
This collaboration has garnered support from other financial institutions as well. T. Rowe Price Associates emphasized the need for user-friendly institutional-grade execution, while Fidelity International highlighted the transformative potential of distributed ledger technology for the finance industry.
The Avalanche blockchain underpins the system, tasked with capturing price quotes and trade confirmations, which is crucial for maintaining financial stability and integrity. The application also incorporates Request For Stream (RFS), allowing real-time post-trade analysis on a single platform while recording price quotes and trade confirmations specific to each counterparty. This ensures that all transactions adhere to institutional compliance.
Citi, with its extensive range of financial products and services available in nearly 160 countries, continues to lead in wealth management innovation through strategic partnerships like this one with MAS.
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