The expansion allows corporations to execute cross-border dollar payments instantly without the need to hold or redeem stablecoins. By utilizing tokenized bank deposits on a permissioned network, Citi bypasses traditional banking cut-off times and holiday calendars, enabling liquidity to move across its global footprint in real time. This service is already operational in seven markets, including the United Kingdom, Singapore, and the United Arab Emirates.
This development places Citi in direct competition with emerging Japanese stablecoin projects, such as the joint initiative by MUFG, SMBC, and Mizuho, which aims for live transactions by March 2027. While these banking-led stablecoins target similar corporate settlement use cases, stablecoins retain unique advantages for public blockchain transfers and retail payments, such as the ongoing trials by Lawson and logistics firm AZ COM Maruwa. Despite this, Citi continues to bridge traditional finance with digital assets, including a collaboration with Coinbase that integrates stablecoin payment capabilities alongside its proprietary tokenized deposit systems.
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