Citi Group, a major U.S. financial institution, is reportedly planning to launch a cross-border payments service for Japanese companies using tokenized deposits by the end of 2026. The service will enable overnight and weekend transfers between locations, with plans to expand collaboration with other banks in the future.
According to a report by a U.S. newspaper, Citi Group has announced plans to launch a cross-border payments service for Japanese companies using tokenized deposits, possibly by the end of 2026. The service was described as the first such initiative aimed at Japanese companies, according to Shamir Khaliq, Citi's global head of services.
The service is expected to enable instant foreign-currency transfers, including overnight and weekend transfers, between Citi locations in the United States, the United Kingdom, Singapore, Hong Kong and Ireland. Companies will reportedly need to do almost no advance preparation and will be able to use the service simply by selecting the token service on the payment instruction screen.
Citi operates Citi Token Services and is said to use a permissioned blockchain with participation limited to approved parties to enable 24-hour fund transfers. A trial conducted in collaboration with DBS Bank was recently reported, with settlement between the two parties said to have been completed within minutes.
According to the report, a trial using the same ledger is positioned as a limited proof of concept (PoC) running from July to December 2026. The Wall Street Journal also reported in 2024 that major banks were planning to build a joint network.
The article also reported plans to expand the use of tokenized deposits among other banks in the future and to conduct a proof of concept for weekend U.S. dollar settlements.