In a strategic move that signals a new phase in institutional adoption of cryptocurrencies, Citi Bank, managing an impressive $759 billion portfolio, took a deep dive into blockchain’s capabilities by running a proof-of-concept experiment with the Spruce subnet of Avalanche (AVAX). This pilot project focused on the tokenization of private equity funds, an initiative that promises to reshape the landscape of capital markets.

The bank is not alone on this journey; he teamed up with financial industry heavyweights like WisdomTree and Wellington Management to test the waters on the Spruce subnet. This subnetwork, described as an Evergreen platform tailored for large financial institutions, seeks to leverage public blockchain infrastructure to innovate in the sector.

Citi’s foray into blockchain is not an isolated case. Other traditional financial institutions, including T. Rowe Price, WisdomTree, Wellington Management and Cumberland, had already recognized the potential of this technology by joining the subnet in April of the previous year, seeking to improve the execution of transactions and payments more efficiently.

The recent experiment conducted by Citi explored peer-to-peer token transfers, secondary transfers to facilitate trading, and validation of new resources through collateralized lending. The results offered a glimpse into how smart contracts can revolutionize the market, enabling greater automation and introducing unprecedented levels of compliance and control for investors and issuers.

Nisha Surendran, Emerging Solutions Lead at Citi Digital Assets, expressed optimism about the test results, stating: “By testing the tokenization of private assets, we believe we are exploring the feasibility of opening up new operating models and creating efficiencies for the broader market. ”.

This move by Citi Bank highlights a growing trend among traditional financial institutions to venture into blockchain technology, seeking to explore and capitalize on its vast possibilities for innovation and efficiency in the financial sector.


The views and opinions expressed by the author, or anyone mentioned in this article, are for informational purposes only and do not constitute financial, investment or other advice. Investing or trading cryptocurrencies carries a risk of financial loss.


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