Citigroup, the major US financial group, will reportedly launch cross-border transfers using blockchain-based tokenized deposits for Japanese companies as early as this year, Nikkei reported. The service is expected to be the first of its kind for Japanese companies offered by a foreign-affiliated financial institution.
Nihon Keizai Shimbun reported on the 9th that Citigroup, a major US financial institution, plans to launch a cross-border transfer service for Japanese companies as early as this year using tokenized deposits based on blockchain technology. The report cited Shahmir Khaliq, Citi's global head of Services.
According to Nikkei, the service will allow companies to send foreign currency abroad instantly, including at night and on holidays. Transfers are envisaged between hubs such as the United States, the United Kingdom, Singapore, Hong Kong and Ireland. In the past, funds often took longer to arrive depending on bank business days and holidays in the recipient country, sometimes requiring funds to be advanced in advance.
Tokenized deposits refer to digital transfers of bank deposit claims on a blockchain. Citi launched Citi Token Services in 2023, and the service is built on a private blockchain. Customers do not need to prepare their own wallets and can use the service through existing banking systems.
Khaliq said that entering the Japanese market would enable Citi to "comprehensively cover major hubs across the Asia-Pacific region." Details of the service for Japanese companies have been compiled based on Nikkei's report.