Citi's 24/7 Dollar Transfers May Slow Stablecoin Adoption in Japan
Citi has launched its Token Services in Japan and the UAE, allowing institutional clients to transfer US dollars around the clock. The service uses tokenized bank deposits on a private permissioned blockchain, giving clients greater flexibility to manage liquidity across regions and currencies in real-time.
The introduction of 24/7 dollar transfers by Citi may slow down the adoption of stablecoins in Japan, particularly for corporate settlements and cross-border payments. Japanese banks such as MUFG, SMBC, and Mizuho are developing their own stablecoin framework, targeting live transactions by March 2027.
Citi's Token Services allows liquidity to move near instantly across its global network, with billions of dollars in transactions already processed. Unlike stablecoins like USDC or JPYC, Citi's tokens represent deposits held within the bank, eliminating the need for clients to acquire and redeem stablecoins.