Citi launches Custody+ for near-real-time services

Citi has launched Custody+, a suite of near- and real-time custody services for institutional investors, as it completes the US rollout of its Single Event Processing technology.

The offering targets clients dealing with compressed settlement cycles, continuous markets and increasingly automated investment processes. Custody+ shifts Citi's custody model from a standardised structure to a modular set of services that can be adapted to different client workflows and operating models.

Investor Services is a key part of Citi's wider Services business, which invests more than US$2 billion each year in its platform strategy. The custody business serves clients in more than 100 markets, including 62 proprietary markets.

Real-time processing

A central part of the launch is real-time asset servicing through Citi's Single Event Processing system. With the US rollout complete, more than 80% of the bank's total event volume is now processed in real time.

The technology has cut processing times for voluntary corporate actions in the United States by as much as 92%. Citi said 96% of all US voluntary events are now processed in under two hours.

Custody+ also includes instant settlement services tied to end-to-end integration from client instruction through to final settlement at central securities depositories. Citi said its integrated ledger and real-time data tools give clients visibility across transactions in its proprietary custody markets.

Foreign exchange services are another part of the package. Citi will offer active and passive FX options, automated hedging and real-time execution to help clients manage liquidity and FX exposure alongside the settlement process.

Data and control

The suite also brings together cash, liquidity, tax and market intelligence functions. Clients will receive instant cash position updates, real-time liquidity sweeping, funding tools and cash balance projections for custody transactions, Citi said.

Through Citi Token Services, the bank is enabling near-instant movement of tokenised deposits 24/7 across selected Citi markets. This reflects a broader effort by large financial institutions to update infrastructure for markets that increasingly operate beyond traditional trading hours.

In tax processing, Citi said AI-led tools have reduced documentation processing times by up to 70%. The changes are intended to help clients obtain faster tax treatment outcomes.

The bank has also expanded its Market Guide platform with AI-based features designed to provide market-specific information, including regulatory updates and operational changes. The platform is available to clients in more than 100 locations.

Another element of the offering is data access through cloud-sharing arrangements and application programming interfaces. Citi said this will allow clients to feed custody data into their own analytics tools and AI models.

Operating models

Citi is also using the launch to set out how it intends to support a wider range of custody models. That includes white-label services that let clients use Citi infrastructure for transaction initiation, workflow management, reporting and market information.

The bank expects to go live with digital asset custody later this year, beginning with Bitcoin custody. It plans to place traditional and crypto custody within the same framework through what it described as a common digital asset architecture.

This part of the strategy underlines how banks and custodians are responding to a market structure in which some assets already settle almost instantly and trade around the clock. For incumbent providers, the challenge is to support both long-established securities processes and newer digital asset models without fragmenting client operations.

Chris Cox, Head of Investor Services at Citi, outlined the scale of the bank's spending in this area.

"Citi's Services business invests over US$2 billion annually in its platform strategy with a focus on speed, scale and availability. Custody+ is a clear example of this investment as we build infrastructure to eliminate latency and drag for institutional investor clients. By integrating our global network with data and technology, we are redefining the operational backbone for clients who require precision, transparency and continuous market access," Cox said.

Amit Agarwal, Head of Custody at Citi Investor Services, said the new suite followed several years of work on the bank's underlying systems.

"Custody+ is the product of a multi-year commitment to building infrastructure that matches the speed of our clients' strategies. We have designed each solution to help clients simplify their operating models amid increasing complexities in the operating environment. Custody+ is our response to their evolving needs as the industry continues to transform, moving away from legacy to next-generation architecture," Agarwal said.