Miami Beach, FL — Tokenized money won’t deliver on its promise if it remains siled within individual banks, according to Ryan Rugg, head of digital assets for treasury and commerce solutions at Citigroup.
Speaking at Consensus in Miami, Rugg said large corporate clients are not looking for single banking solutions but systems that work seamlessly between financial institutions. “No one just wants a Citi token,” she said. “They want that multi-bank aspect.”
This comment reflects a major challenge in the push to introduce blockchain-based payments into traditional finance. While banks have begun issuing tokenized deposits and creating internal platforms, many of these systems operate within closed networks.
For global companies, this approach is not enough. Rugg said Citi clients often manage “hundreds, if not thousands, of bank accounts at multiple banks around the world,” making moving money for payroll, suppliers and investments complex.
These customers are demanding more and more real-time functionality. In a survey conducted by Citi several years ago, Rugg said the response was “basically unanimous” that faster, always-on payments were a top priority.
Blockchain technology offers a path to this goal, but only if the systems can connect. Citi built its own tokenized platform and linked it to its broader banking network, including a 24/7 US dollar clearing system with over 300 banks. However, Rugg stressed that internal upgrades alone are not enough.
“This is another tool in the toolbox,” she said, adding that banks also need to modernize traditional infrastructure and connect it to digital systems.
The industry as a whole faces fragmentation. A growing number of banks, fintech companies and crypto projects are building separate networks, often using different standards. This risks recreating the same inefficiencies that blockchain aims to correct.
Rugg argued that shared infrastructure – built “for the industry, by the industry” – will be essential to the development of tokenized finance, citing models such as Swift’s global messaging network.
At the same time, regulation remains a constraint. Large banks need clear legal frameworks before rolling out new products. “Unless it’s 100 percent permitted, we’re not going to do that,” Rugg said.
