30s Summary

Citigroup and Fidelity International are working on a new money-market fund incorporating a digital foreign exchange swap to speed up multi-currency transactions. The blockchain-based system aims to enhance money management and boost decision-making speed for businesses. The initiative forms part of a larger project by the Monetary Authority of Singapore exploring blockchain use in financial markets. The technology’s efficiency and investment potentials have attracted the interest of other financial heavyweights, such as BlackRock.

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Oops, we made a mistake in our previous article where we said Fidelity Investments was part of a certain business venture. In reality, it’s another company called Fidelity International.

Now, onto the real story. Citigroup and a huge asset manager known as Fidelity International are creating a new kind of money-market fund. This isn’t just any old fund though, it includes a digital foreign exchange swap. Sounds fancy, right?

The idea behind this is to speed up the process of settling transactions involving different currencies. At the moment, this usually takes a bit of time which can be annoying for businesses trying to manage their finances. By speeding up this process, cash flow improves and businesses can potentially make better, quicker decisions.

Citigroup and Fidelity will be showing off this novel concept at a big financial tech event in Singapore in 2024. Keep an eye out for updates on this.

Citigroup and Fidelity International are using digital tokens and blockchain technology for their new money-market fund. This will make money transactions faster and smoother, helping investors manage their money better. The new system could also allow businesses to branch out, access better returns on U.S. dollar money-market funds, and keep their finances flexible.

This collab is part of a bigger project by the Monetary Authority of Singapore. The project is all about exploring how blockchain can be used in financial markets.

This approach isn’t unique to Citigroup and Fidelity International. Big financial players like BlackRock are also turning to tokenization. Experts predict this technology will make things run more efficiently, offer new investment opportunities, and help traditional institutions stay competitive as the financial market changes.