Citi Pilots Tokenized Trade Finance on Solana Blockchain
Citi is evaluating how blockchain technology could reshape global trade finance at a time when tariffs, geopolitical tensions, and rapid technological shifts are disrupting supply chains. In its 2026 Supply Chain Financing report, the Wall Street bank indicated that global trade has experienced significant volatility, citing U.S. tariff policies introduced during Donald Trump’s presidency, broader macroeconomic shocks, and rising geopolitical instability as key forces compelling companies to rethink how goods and capital flow across borders.
Within this evolving environment, Citi identified blockchain and artificial intelligence as technologies that have materially influenced trade and supply chain management. The bank suggested that these innovations are enabling firms to reduce operational costs and accelerate transaction processing, thereby enhancing overall efficiency.
Tokenizing Bills of Exchange on Blockchain
At the core of Citi’s initiative is a collaborative effort involving its Trade and Working Capital Solutions division, PwC, and the Solana blockchain network. According to details outlined in the report, the bank completed an internal proof of concept that involved representing a traditional bill of exchange as a digital token on a blockchain. The experiment simulated the full lifecycle of the instrument, including issuance, financing, distribution, and settlement, in order to assess how the concept could be translated into practical implementation.
The pilot was conducted on a private, permissioned blockchain using synthetic data rather than real client transactions. Citi created fictional participants to replicate buyers, suppliers, and financing banks. In this controlled setting, a bill of exchange, a commonly used trade finance instrument obligating a buyer to pay a seller at a future date, was converted into a unique digital token. This token embedded key transaction information, such as the payment amount, involved counterparties, and maturity date.
Once issued and electronically signed, the tokenized bill could be sold to a bank at a discount, enabling the supplier to secure early financing. Ownership rights transferred automatically with the token, and repayment at maturity was directed to the current holder. Through this structure, Citi examined how tokenization might streamline documentation, automate ownership changes, and facilitate faster settlement.
Institutional Interest in Solana Grows
Although Citi characterized the initiative as remaining in the proof-of-concept phase, Solana has indicated that certain product elements linked to tokenization are already operational within its ecosystem. The Solana network has increasingly attracted institutional interest, particularly from financial firms exploring the tokenization of real-world assets.
Earlier this year, Solana reported reaching a record of $873 million in tokenized real-world assets, reflecting its growing appeal among established market participants. Large corporations such as Alibaba have implemented infrastructure enhancements aimed at optimizing Solana’s network performance. In parallel, asset managers, including WisdomTree, have expanded their activities on the blockchain, further reinforcing its credibility within traditional finance circles.
Implications for Global Trade Finance
Citi’s experiment signals that major banks are moving beyond peripheral crypto services and are actively assessing blockchain applications for core trade finance functions. If adopted at scale, tokenized bills of exchange could significantly reduce paperwork, accelerate settlement cycles, and improve liquidity access for suppliers worldwide.
The broader implication is that financial institutions are accelerating digital transformation efforts in response to mounting tariff pressures and geopolitical risks. By leveraging blockchain and AI-driven systems, banks and corporations alike are seeking to enhance resilience and maintain competitiveness in a shifting global trade landscape.
The post Citi Pilots Tokenized Trade Finance on Solana Blockchain appeared first on CoinTrust.
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