Citigroup will launch tokenized deposit services for Japanese companies, enabling instant foreign-currency transfers 24 hours a day, seven days a week by year-end 2026. The initiative makes Citigroup the first foreign financial institution to offer such services to corporate clients in Japan.
Tokenized deposits—digital representations of traditional bank deposits on a blockchain—allow immediate, verifiable transfers that bypass slower conventional settlement cycles. Citigroup processes approximately $6 trillion in funds daily across its global network and currently maintains roughly $1 billion in tokenized deposit volume.
The service targets Japanese companies with international operations and will initially support cross-border payments across five countries. It directly addresses a core inefficiency in traditional banking: legacy remittance systems operate within specific banking hours and route funds through multiple intermediaries, creating delays for global businesses.
Blockchain settlement reduces operational costs and provides an immutable transaction ledger. By offering a regulated institutional alternative to stablecoin rails, Citigroup positions tokenized deposits as a viable infrastructure upgrade for corporate treasury operations.
Client demand for continuous financial operations drives the deployment. Businesses operating across time zones require 24/7 payment capabilities that traditional banking cannot deliver.
Citigroup has also introduced tokenized depositary receipts to connect private companies and investors, enabling efficient distribution and transfer without public listing.
