cryptobriefing.com
Global banking heavyweight Citigroup is preparing to launch a blockchain-based remittance service for Japanese corporate customers using tokenized deposits, potentially as early as this year, Nikkei reported Wednesday.
The service would enable companies to send foreign currencies instantly, including at night and during holidays, overcoming restrictions that apply to traditional cross-border bank transfers. According to Shahmir Khaliq, Citi’s head of services, the offering would be the first of its kind from a foreign financial institution for corporate customers in Japan.
Tokenized deposits are being developed alongside stablecoins as the foundation for next-generation payments. Rather than creating a separate banking system, they use existing bank infrastructure and represent traditional deposits digitally so they can move across blockchain networks.
The planned service would allow Japanese companies to move foreign currencies instantly between Japan and Citi operations in the US, U.K., Singapore, Hong Kong and Ireland. Citi would take responsibility for administrative and risk-management processes, reducing the amount of preparation required from corporate customers.
The entry of Citi, which moves around $6 trillion in funds daily, into Japan’s tokenized deposit market could encourage more companies to adopt the technology.
Japan is among Citi’s five most important markets globally. Khaliq said expanding tokenized deposit services in Japan and other markets would help Citi establish coverage across key financial centers in the Asia-Pacific region.