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      Citigroup Reports Shift to Production Infrastructure in Institutional Tokenization

      Citibank has released an insights report titled "Digital Frontier: Collateral in a Tokenized World," highlighting a significant transition in collateral management as financial markets evolve towards continuous operations. The report indicates that institutional-level tokenization is advancing from pilot programs to the establishment of scalable operational frameworks within global banking, custody, and market infrastructure. This shift aims to transform collateral into a continuous engine for liquidity and optimization.

      The report emphasizes the potential of combining tokenized assets with regulated on-chain settlement currencies to facilitate instant atomic cash-to-cash transactions. This innovation could eliminate the risks associated with multi-day gaps in transactions and broaden the types of eligible collateral, including tokenized money market funds. Citibank anticipates that global asset managers and owners will integrate traditional and digital collateral into a unified, continuously optimized inventory over the coming years, adapting to hybrid operating models that encompass various counterparties, custodians, and settlement venues.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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