Citi and Fidelity International have announced the proof-of-concept of an on-chain money market fund (MMF) with digital foreign exchange (FX) swap solution which demonstrates real-time settlement. This innovative on-chain solution could enable investors to conduct seamless and real-time settlement of multi-asset positions in different currencies. The successfully tested solution – a tokenized MMF with an embedded digital FX swap – has the potential to enable faster, seamless management of treasury positions, eliminate delays and improve efficiency. Sam Hewson, Global Head of FX Sales at Citi, said: “As tokenization continues to evolve in capital markets, we see a potential future in which investors could trade and settle digital assets in real-time, in different currencies, and across multiple distributed ledger technology platforms. FX markets could enable investors to quickly and efficiently access digital assets globally, with timely liquidity. This innovation could also open potential opportunities to address broader goals, such as portfolio diversification and risk management.”
