Citi Token Services has launched 24/7 tokenized dollar transfers in Japan, offering institutional clients an alternative to stablecoin payment projects. According to Citi, the service is now live in Japan and the United Arab Emirates, bringing its global footprint to seven markets including the United States, Ireland, Hong Kong, Singapore and the United Kingdom. Japan supports US dollar transactions while UAE clients can move both dollars and euros. The service uses tokenized bank deposits on a private permissioned blockchain, allowing clients to transfer funds between supported Citi markets without banking cut-off times or holiday restrictions. Citi has already processed billions of dollars in transactions using this technology, with Stephen Randall, Citi's global head of Liquidity Management Services, stating the expansion gives clients "greater optionality to move and manage liquidity across regions and currencies in real-time."
Japan has launched a six-month Stablecoin Demonstration Experiment Partners program that began on September 24, 2025 and runs until February 2027. According to reports from Japan Blockchain Foundation, the program involves 26 companies, financial institutions and local government bodies testing EJPY and other stablecoin use cases. Participants include Toshiba, SCSK, QUICK, Seiko Solutions, Hachijuni Nagano Bank, Asahi Broadcasting Group Holdings, Tobu Top Tours, and Tagawa City from the public sector. The foundation has publicly named 16 participants so far, with another 10 companies to be disclosed after completing discussions with the organizations.
The program covers comprehensive stablecoin applications including domestic and cross-border payments, business transactions, digital asset settlement and Web3 services. As reported by Japan Blockchain Foundation, participants will examine potential use cases across domestic payments and remittances, cross-border transactions, business-to-business settlements, and payments involving digital assets such as real-world assets and security tokens. Other areas include Web3 services, local government and regional economy payments, and new financial services built around stablecoins. The trial will specifically focus on EJPY, a trust-based yen stablecoin that the Japan Blockchain Foundation is preparing to issue. The foundation emphasizes that companies will develop use cases based on their own business needs rather than working from a single predefined payment model.
Participants will receive EJPY test tokens, wallets and access to Japan Open Chain infrastructure for technical trials. According to Japan Blockchain Foundation, the program provides information on stablecoin regulations, market developments, EJPY structure and use cases. Technical support includes individual consultations for companies designing stablecoin-based business models or systems and training sessions to help participants identify practical applications. The foundation is developing EJPY as a trust-based, yen-denominated stablecoin centered on Japan Open Chain, an Ethereum-compatible Layer 1 blockchain operated by a consortium of Japanese companies. The trial will establish a testing environment where participants can use trial EJPY to identify use cases that could be applied to real business operations.
Major Japanese banks are advancing stablecoin initiatives, with MUFG Bank, Sumitomo Mitsui Banking Corporation and Mizuho Bank targeting live stablecoin transactions during fiscal 2026. According to Japan Blockchain Foundation, these banks have been working through a shared framework covering issuance infrastructure, governance, operating rules and systems. The banks completed cross-border testing in September using the Canton Network for direct exchange between yen and won stablecoins without US dollar conversion. Citi's entry creates direct competition for institutional payment flows, as the bank's tokenized deposits offer near-instant liquidity movement across its global network. The model puts tokenized bank deposits and stablecoins into closer competition for some institutional payment flows, with Citi's service allowing funds to remain as commercial bank deposits while gaining round-the-clock transfer capabilities.
The program builds on existing stablecoin developments in Japan, including Lawson's stablecoin trial that expanded in August to include JPYC, USDC and USDT at two Tokyo stores. As reported by Japan Blockchain Foundation, AZ COM Maruwa Holdings has plans to use JPYC for payments involving approximately 2,300 business partners and contractors. The stablecoin issuer JPYC Inc. received registration as a funds transfer service provider in August 2025 and launched its current stablecoin service later that year. Japan's Financial Services Agency established a dedicated Cryptocurrency and Stablecoin Division in August, bringing digital asset supervision under a standalone department. Citi's expansion comes as Japan's stablecoin market develops beyond institutional treasury transfers, with retail and logistics companies testing blockchain-based payment systems that fall outside Citi's main banking infrastructure focus.
