Citi Plans Tokenized Deposit Service in Japan

Citigroup plans to introduce blockchain-based tokenized deposit remittance services for corporate clients in Japan as early as late 2026, according to a report by Nikkei Asia corroborated by CryptoTimes. Shahmir Khaliq, Citi's global head of services, outlined the initiative on September 9. The rollout represents the first tokenized deposit offering in Japan by a foreign financial institution.

The service will run on the Citi Token Services for Cash platform, which has operated for institutional clients outside Japan since 2024. Dublin joined the network in November 2025. Corporate clients will be able to transfer funds across a permissioned blockchain between Japan and five overseas Citi hubs: the United States, the United Kingdom, Singapore, Hong Kong, and Ireland. The transfers operate strictly within Citi's network.

Citigroup processes approximately $6 trillion in daily fund transfers globally, with tokenized deposits currently making up about $1 billion of that daily total. Japan ranks as one of the bank's five most important markets worldwide. On September 5, DBS Bank and Citi completed the first weekend dollar payment between Singapore and New York using the Swift Digital Ledger, achieving settlement within minutes.

The expansion follows Japanese regulatory updates to the Payment Services Act, which established a separate legal category distinguishing tokenized deposits from stablecoins. Citi has not yet disclosed a fee schedule, supported currencies, or an initial client list. Alongside JPMorgan, Bank of America, and Wells Fargo, Citi is also participating in a Clearing House consortium targeting the first half of 2027 to deploy a shared tokenized deposit network.