Citigroup launches tokenized deposit remittance service for Japanese corporates
In brief
- Citigroup launches blockchain remittance service using tokenized deposits for Japanese corporates
- Service enables instant 24/7 foreign currency transfers, bypassing traditional banking hour restrictions
- First foreign institution offering tokenized deposit remittance to Japanese corporate clients
- Tokenized deposits leverage existing bank infrastructure for cross-blockchain fund transfers
How Tokenized Deposits Work
Tokenized deposits use existing bank infrastructure and represent traditional deposits digitally so they can move across blockchain networks. The approach preserves the security of conventional banking while enabling faster settlement and round-the-clock transaction capability. Citi has already integrated tokenized deposits into its Citi Token Services offering, which allows institutional clients to move liquidity across participating Citi branches on a 24/7 basis.
Strategic Expansion in Japan
The planned service would allow Japanese companies to move foreign currencies instantly between Japan and Citi operations in the US, UK, Singapore, Hong Kong and Ireland. According to Shahmir Khaliq, Citi's head of services, the offering would be the first of its kind from a foreign financial institution for corporate customers in Japan.
Citi ranks Japan among its five most important markets worldwide and operates a significant presence across the region. Citi would take responsibility for administrative and risk-management processes, ensuring institutional-grade oversight. The bank moves roughly $6 trillion in funds daily, making it well-positioned to handle the operational demands of a tokenized remittance network.
This move reflects broader industry momentum toward digital settlement infrastructure.
