Citigroup is preparing to launch a blockchain-based remittance service for corporate clients in Japan, with a potential rollout scheduled for later this year. According to Shahmir Khaliq, head of services at Citi, this will be the first service of its kind offered by a foreign financial institution to Japanese businesses.
The new platform utilizes tokenized deposits, which represent traditional bank deposits in a digital format on blockchain networks. This approach allows companies to transfer foreign currencies instantly, bypassing the time constraints and operational restrictions associated with traditional cross-border banking systems.
The service will support instant transfers between Japan and Citi operations in the US, UK, Singapore, Hong Kong, and Ireland. The bank will manage all administrative and risk-management processes, which is intended to simplify the operational requirements for corporate customers.
The initiative is part of the existing Citi Token Services offering, which already enables institutional clients to move liquidity across branches on a 24/7 basis. Citigroup, which processes approximately $6 trillion in daily funds, considers Japan one of its five most significant global markets.
