U.S.-based financial giant Citi plans to launch a tokenized-deposit service by year-end that will enable Japanese companies to make overseas remittances instantly, including at night and on holidays, according to a report. Use of instant remittances across its global network is also expected to expand.
Citi plans to launch an overseas remittance service using tokenized deposits for Japanese companies by the end of 2026. The service will use blockchain technology to enable instant foreign-currency transfers regardless of the time of day or holidays. It is expected to cover transfers between offices in the U.S., U.K., Singapore, Hong Kong and Ireland, with users selecting the token service from the remittance instruction screen. Citi will handle related administrative work and risk management, according to the report.
Tokenized deposits are a digital form in which bank deposits are transferred on a blockchain. They may mitigate delays in the receipt of overseas remittances caused by business hours and holidays under conventional arrangements. Greater flexibility in moving funds could lead companies to reconsider when they prepare funds.
Citi has offered services overseas since 2024, including the cash-management service Citi Token Services for Cash. The service uses a permissioned blockchain with participation limited to approved parties to facilitate the movement of funds within Citi’s network.
An early example involving a Japanese company is Mitsubishi Corporation’s adoption of JPMorgan’s blockchain remittance service. JPMorgan disclosed the move at the end of March 2024.