February 21, 2024
By Sharan Kaur Phillora
Citi, in collaboration with Singapore’s Monetary Authority (MAS), has unveiled a groundbreaking blockchain application for pricing and executing bilateral spot foreign exchange (FX) trades, as part of the innovative Project Guardian initiative.
Here’s what we know:
This advanced solution, which was tested with the USD/SGD pair, signifies a pivotal advancement in the use of blockchain technology for financial transactions, potentially applicable to various fiat currency pairs.
The application, currently in its testing phase and not yet available to clients, leverages blockchain’s strengths to offer real-time streaming of price quotes and ensure secure, immutable record-keeping of trade executions. This development aligns with institutional practices and regulatory standards, ensuring that only the parties involved in a trade have access to detailed information.
Sam Hewson, Citi’s Head of FX Sales, highlighted the bank’s commitment to adapting to new trading environments, stating the importance of building foundational capabilities that cater to global clients across both traditional and blockchain platforms. The application utilizes oracles for efficient bilateral messaging, enhancing the pre-trade and execution stages of the trade lifecycle.
Citi’s collaboration with T. Rowe Price Associates and Fidelity International under Project Guardian reflects a collective effort to harness blockchain technology for improving institutional-grade execution and scalability in trading. Representatives from T. Rowe Price and Fidelity International praised the initiative for its potential to streamline financial processes and democratize access to financial services.
This initiative utilized a private permissioned instance of the Avalanche blockchain for capturing price quotes and trade confirmations, showcasing the practical application of distributed ledger technology in revolutionizing financial systems. Citi’s blockchain FX solution represents a significant step towards integrating blockchain technology within the financial sector, promising enhanced efficiency and security for financial transactions.
About the author
Sharan Kaur Phillora’s thirst for knowledge has led her to study many different subjects, including NFTs and Blockchain technology – two emerging technologies that will change how we interact with each other in the future. When she isn’t exploring a new idea or concept, she enjoys reading literary masterpieces.
