Citi Completes Cross-Border Payments Pilot Using LACChain

Citi teamed with the Inter-American Development Bank to send cross-border payments between the U.S. and Latin America.

AccessTimeIconApr 8, 2021 at 3:09 p.m. UTC
Updated Sep 14, 2021 at 12:38 p.m. UTC

The innovation arm of multinational finance giant Citi has wrapped a proof-of-concept project with the Inter-American Development Bank (IDB) to send cross-border payments on a blockchain.

  • According to an announcement Thursday, the project used the LACChain Blockchain Network to power payments from the IDB’s headquarters in Washington, D.C., to a recipient in the Dominican Republic.
  • LACChain runs on EOSIO and recently enlisted Block.one, the firm that raised $4 billion to build the software in 2018, as a partner.
  • Funds were deposited in dollars in a Citi account, tokenized and transferred using digital wallets before being transferred into Dominican pesos at an exchange rate set by Citi.
  • The IADB believes this project demonstrates how blockchain technology can improve the process of cross-border payments in development assistance and international remittances.
  • Projects of this nature are becoming fairly commonplace in the payments sector. The central banks of Hong Kong, Thailand, China and UAE recently joined forces on a project to use blockchain technology for regional payments.

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.