Citi and Fidelity Unveil Onchain Forex Swap Proof-of-Concept
A joint initiative by Citi and Fidelity showcases a groundbreaking approach to onchain foreign exchange swaps at the upcoming Singapore Fintech Festival.
Citi and Fidelity have collaborated to create a proof-of-concept for a digital foreign exchange (FX) swap utilizing an onchain money-market fund (MMF).
This proof-of-concept will be showcased at the Singapore Fintech Festival from November 6 to 8, highlighting its potential for real-time settlement of multi-asset positions. Investors could also access better yields on foreign cash funds.
The initiative falls under Singapore's Monetary Authority's (MAS) Project Guardian, aimed at developing universal standards for the tokenization of assets.
Tokenization refers to the process of representing financial instruments as digital assets and facilitating transactions on-chain. Major players in traditional finance (TradFi) are increasingly investigating this concept to enhance the efficiency of global financial markets.
For instance, the proof-of-concept aspires to settle trades between assets in different currencies instantly instead of taking several days, demonstrating the potential advancements in financial transactions that onchain solutions might bring.
Read More: Singapore Pushes for Commercialization of Tokenization
