Citibank And Fidelity Unveil Digital FX Swap Concept

According to BlockBeats, on November 4, financial giants Citibank and Fidelity Investments announced the development of a proof-of-concept for a digital foreign exchange (FX) swap aimed at facilitating transactions within on-chain money market funds (MMFs). This innovative concept will be showcased at the Singapore FinTech Festival from November 6 to 8, demonstrating how investors can settle multi-asset positions in real-time. The initiative will also enable investors to access higher yields from foreign currency cash funds by investing in money market funds denominated in other currencies, thereby diversifying their portfolios. This was highlighted in an announcement made on Monday. Citibank and Fidelity developed this proof-of-concept under the Monetary Authority of Singapore's (MAS) "Project Guardian," which focuses on advancing tokenization as a common standard. Tokenization refers to the process of converting financial instruments into digital assets for on-chain trading, a method being explored by many traditional financial institutions to enhance the efficiency of global financial markets.