Citi has switched on its tokenised deposit service in the UAE and Japan, letting corporate clients in both markets move money between Citi accounts around the clock instead of waiting for banking cut-off times. The bank that UAE clients can move US dollars and euros, while Japan launches with dollars only.
The two launches take Citi Token Services to seven markets, joining the US, the UK, Ireland, Singapore and Hong Kong. The service turns client deposits into tokens on a private, permissioned blockchain run by Citi, so transfers between Citi accounts settle almost instantly, including across borders.
Rizwan Shaikh, Citi’s head of services for the Middle East and Africa, said:
“Expanding Citi Token Services into the UAE with USD and Euro capabilities enables clients to manage cross-currency liquidity 24/7.”
Close to $1 billion a day
Citi first announced the service in September 2023. At the bank’s investor day in May, Shahmir Khaliq, Citi’s head of services, said,
“The service was live in five locations and that client adoption has been strong, with hundreds of clients moving close to $1 billion each day. The main use so far has been liquidity and working capital management for multinational clients, and that Citi is building the technology into its 24/7 US dollar clearing service. The same infrastructure gives us the ability to issue a Citi stablecoin, an option the bank will keep evaluating.”
Also, read Saudi Entrepreneur Al-Salloum Acquires 10% Stake in UAE’s GlobalPay
JPMorgan’s network is bigger
The closest comparison is JPMorgan’s Kinexys, which also moves tokenised deposits for institutional clients. JPMorgan has said the network has since launch and handles average daily volume above $7 billion. In June it added five Asia-Pacific currencies, including the yen, taking it to eight.
Citi’s UAE launch adds a market rather than a currency. Clients there get dollars and euros, the two currencies the service already supported. Citi’s release makes no mention of the dirham.
A second tokenised deposit test in the UAE
Citi was also the counterparty when First Abu Dhabi Bank completed a live tokenised deposit transaction on Swift’s blockchain ledger earlier in September, part of a pilot involving 17 banks. That transaction coordinated a transfer between two banks, with settlement still running through correspondent accounts. Token Services is narrower: money moves only between accounts held at Citi.
Citi has not said how many UAE clients have signed up, what volumes it expects in the market, or whether it plans to add the dirham. The UAE launch also gives no figure for how much of the near-$1 billion a day comes from cross-border transfers rather than movements within a single country.
