Hunit - Hunit is a SaaS platform offering legal professionals a new way to digitalise paper-based investment agreements using DLT and smart contracts.

Citibank’s 900 million reasons to use smart contracts

In case you’re not clear about the risks of manual administration of private market ‘alternative’ investments – a smart contract could have saved Citibank from a $900m mistake earlier this week.

Citibank is administrating Revlon’s $1.8B loan from a syndicate of private investors. They (maybe) meant to send out the latest interest payment but wired $900m in error.

That’s not a typo – and Citibank is having to sue to get close to $400m of it back.

Payments like this can be fully automated in a smart contract based private credit agreement.

It seems that Citibank has almost a billion reasons to start thinking about a better way to do this.

Bloomberg article after the jump