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C Pushes Tokenized Deposits Deeper Into Asia With Japan Expansion
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Key Takeaways
C aims to become Japan's first foreign bank offering tokenized deposit-based transfers to corporates.
Citi Token Services was live in five locations and moved close to $1 billion daily as of May 2026.
C's 24/7 USD Clearing platform now serves more than 300 bank clients globally.
Citigroup, Inc. (C - Free Report) is extending its digital-payments strategy into Japan, with plans to introduce tokenized deposit services for corporate clients by the end of 2026, according to a Yahoo Finance article that cited Nikkei Asia. The initiative could strengthen C’s position in next-generation cross-border payments as corporations increasingly seek faster, round-the-clock access to liquidity.
The proposed service will use Citi Token Services, the bank’s permissioned blockchain-based platform, allowing Japanese companies to transfer funds internationally at virtually any time, including nights, weekends and public holidays. The service is expected to connect Japan with Citigroup operations in the United States, the United Kingdom, Singapore, Hong Kong and Ireland. C is aiming to become the first foreign bank to offer tokenized deposit-based international transfers to corporate customers in Japan.
The Japan expansion builds on several earlier initiatives. Citigroup launched 24/7 USD Clearing in late 2022, initially enabling financial institutions to make dollar payments continuously across its global network. By September 2023, more than 100 financial-institution clients were already using the service. The bank subsequently introduced Citi Token Services in 2023 for cash management and trade finance. C continued scaling the platform in 2025 by integrating Citi Token Services with 24/7 USD Clearing, initially connecting the United States and the United Kingdom.
Adoption has since accelerated. At Citigroup’s May 2026 Investor Day, management said Citi Token Services was live in five major locations, supported both U.S. dollar and euro flows and was being used by hundreds of clients to move close to $1 billion per day. More recently, Citigroup said its 24/7 USD Clearing platform serves more than 300 bank clients globally, underscoring the expanding infrastructure supporting its real-time payment strategy.
Japan therefore represents a logical extension rather than a standalone blockchain initiative. Bringing tokenized deposits to another major corporate market could help multinational clients manage liquidity more efficiently across time zones, reduce reliance on pre-funded accounts and accelerate cross-border settlements.
For the Services franchise, this growing scale is strategically important. As clients consolidate more of their treasury activity with Citigroup, the bank can benefit from higher recurring transaction revenues, stronger customer stickiness and greater operating leverage from its existing global infrastructure. The ability to offer continuously available, programmable payments may also help differentiate Citigroup from peers as corporations increasingly seek real-time liquidity solutions.
Overall, the Japan expansion should reinforce Services as a key growth engine for Citigroup. With Citi Token Services already handling close to $1 billion in daily flows and 24/7 USD Clearing serving more than 300 banking clients, further geographic expansion could support higher payment activity, deepen institutional relationships and strengthen the franchise’s long-term revenue potential.
Other Banks Expand Digital-Asset Initiatives
Wells Fargo (WFC - Free Report) and The Bank of New York Mellon Corporation (BNY - Free Report) are also expanding their digital-asset capabilities as financial institutions increasingly move beyond traditional crypto custody toward blockchain-enabled financial services.
WFC’s initiative is expected to enhance treasury management through programmable payments supported by smart contracts, allowing funds to be released when predefined conditions are met.
Meanwhile, BNY has partnered with Galaxy Digital to integrate staking capabilities into its Digital Asset Custody platform. The initiative seeks to combine custody and staking within a single institutional servicing model, subject to regulatory approval.
Citigroup Price Performance & Zacks Rank
C’s shares have jumped 39.4% in the past year compared with the industry’s growth of 20.3%.
View the Zacks #1 Rank List
Image: Shutterstock
C Pushes Tokenized Deposits Deeper Into Asia With Japan Expansion
Key Takeaways
Citigroup, Inc. (C - Free Report) is extending its digital-payments strategy into Japan, with plans to introduce tokenized deposit services for corporate clients by the end of 2026, according to a Yahoo Finance article that cited Nikkei Asia. The initiative could strengthen C’s position in next-generation cross-border payments as corporations increasingly seek faster, round-the-clock access to liquidity.
The proposed service will use Citi Token Services, the bank’s permissioned blockchain-based platform, allowing Japanese companies to transfer funds internationally at virtually any time, including nights, weekends and public holidays. The service is expected to connect Japan with Citigroup operations in the United States, the United Kingdom, Singapore, Hong Kong and Ireland. C is aiming to become the first foreign bank to offer tokenized deposit-based international transfers to corporate customers in Japan.
The Japan expansion builds on several earlier initiatives. Citigroup launched 24/7 USD Clearing in late 2022, initially enabling financial institutions to make dollar payments continuously across its global network. By September 2023, more than 100 financial-institution clients were already using the service.
The bank subsequently introduced Citi Token Services in 2023 for cash management and trade finance. C continued scaling the platform in 2025 by integrating Citi Token Services with 24/7 USD Clearing, initially connecting the United States and the United Kingdom.
Adoption has since accelerated. At Citigroup’s May 2026 Investor Day, management said Citi Token Services was live in five major locations, supported both U.S. dollar and euro flows and was being used by hundreds of clients to move close to $1 billion per day. More recently, Citigroup said its 24/7 USD Clearing platform serves more than 300 bank clients globally, underscoring the expanding infrastructure supporting its real-time payment strategy.
Japan therefore represents a logical extension rather than a standalone blockchain initiative. Bringing tokenized deposits to another major corporate market could help multinational clients manage liquidity more efficiently across time zones, reduce reliance on pre-funded accounts and accelerate cross-border settlements.
For the Services franchise, this growing scale is strategically important. As clients consolidate more of their treasury activity with Citigroup, the bank can benefit from higher recurring transaction revenues, stronger customer stickiness and greater operating leverage from its existing global infrastructure. The ability to offer continuously available, programmable payments may also help differentiate Citigroup from peers as corporations increasingly seek real-time liquidity solutions.
Overall, the Japan expansion should reinforce Services as a key growth engine for Citigroup. With Citi Token Services already handling close to $1 billion in daily flows and 24/7 USD Clearing serving more than 300 banking clients, further geographic expansion could support higher payment activity, deepen institutional relationships and strengthen the franchise’s long-term revenue potential.
Other Banks Expand Digital-Asset Initiatives
Wells Fargo (WFC - Free Report) and The Bank of New York Mellon Corporation (BNY - Free Report) are also expanding their digital-asset capabilities as financial institutions increasingly move beyond traditional crypto custody toward blockchain-enabled financial services.
WFC’s initiative is expected to enhance treasury management through programmable payments supported by smart contracts, allowing funds to be released when predefined conditions are met.
Meanwhile, BNY has partnered with Galaxy Digital to integrate staking capabilities into its Digital Asset Custody platform. The initiative seeks to combine custody and staking within a single institutional servicing model, subject to regulatory approval.
Citigroup Price Performance & Zacks Rank
C’s shares have jumped 39.4% in the past year compared with the industry’s growth of 20.3%.
Image Source: Zacks Investment Research
The company currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.