Citigroup to launch blockchain tokenized deposit service in Japan

Citigroup plans to launch a blockchain-based “tokenized deposit” cross-border payment service for Japanese corporate clients within 2026. This marks the first time a foreign financial institution will offer such a service to Japanese companies.

The service, part of “Citi Token Services,” utilizes a permissioned blockchain to enable near-instantaneous foreign currency transfers 24/7, including nights and holidays. This technology aims to eliminate the delays caused by traditional banking hours and regional holidays, allowing businesses to manage cash flow more efficiently without needing to pre-fund overseas accounts.

Citi intends to connect its Japanese operations with its hubs in the United States, United Kingdom, Singapore, Hong Kong, and Ireland. The bank is also working toward future interoperability with other financial institutions by collaborating with SWIFT and The Clearing House. Recent successful tests include a weekend USD settlement between Citi’s New York branch and Singapore’s DBS Bank using the SWIFT Digital Ledger.