Siam Commercial Bank joins Citi's 24/7 USD clearing

The Siam Commercial Bank has gone live with Citi's 24/7 USD Clearing and Citi Token Services solution, becoming the first financial institution client to adopt the combined service.

The arrangement provides the Thai lender with round-the-clock US dollar clearing for cross-border payments to corporate and institutional clients. The service supports near-real-time settlement at any time of day, including weekends and public holidays, helping to overcome long-standing cut-off times for international payments.

The first transaction under the set-up involved Phillip Securities Thailand, a subsidiary of PhillipCapital and a client of the Thai bank. US dollar funds were transferred from a Citi account in London held by Phillip Capital Inc to a beneficiary account with The Siam Commercial Bank in Thailand over a US holiday weekend.

The transaction offers an early example of how banks and their clients could move funds across borders outside normal banking hours. It also shows how the service can be used between a Citi account and a non-Citi account, rather than only within a single bank's network.

How it works

Citi Token Services uses a private permissioned blockchain within the regulated banking system to tokenise deposits held in Citi's global network. In this case, the tokenised deposit element has been linked to Citi's 24/7 USD Clearing service, which connects more than 300 financial institutions across more than 50 markets.

Citi describes the structure as part of a broader "network of networks" approach, designed to let clients operate across several banks, markets and payment networks. For large companies and financial institutions, that matters because cross-border treasury operations often depend on a patchwork of domestic payment systems, correspondent banking arrangements and market cut-off times.

For The Siam Commercial Bank, the move forms part of a broader push to modernise transaction banking services for businesses with international payment needs. The lender sees tokenisation in this area as a way to ease operational constraints for clients managing overseas business.

"At SCB, we continuously invest in innovative capabilities that help our corporate and institutional clients operate more efficiently in an increasingly global and connected business environment. Through our collaboration with Citi, we are the first bank in Thailand to leverage tokenization to enhance cross-border USD capabilities, helping our clients simplify operational constraints and conduct their international business activities with greater flexibility," said Thanawatn Kittisuwan, Head of Transaction Banking, The Siam Commercial Bank.

Digital payments

The launch also gives Citi a reference case for its digital assets strategy in transaction services. Large banks have spent several years testing blockchain-based payment tools, but many projects have remained in pilot stages or been limited to internal use cases.

By linking tokenised deposits to a live cross-border clearing service for a bank client, Citi is seeking to demonstrate a practical use for the technology in commercial payments. The emphasis is less on crypto-style assets and more on using blockchain infrastructure within existing regulated banking frameworks.

That distinction has become increasingly important as banks try to persuade corporate treasurers and institutional clients that newer forms of payment infrastructure can fit within established compliance, liquidity and settlement arrangements. A system that keeps transactions within the banking perimeter may be easier for regulated institutions to adopt than one that relies on public blockchains or external digital assets.

The integrated service expands Citi's always-on client offering by linking traditional payment rails with digital ones. The model is also intended to be interoperable across different banking and market environments.

"Our enhanced 24/7 USD Clearing solution integrated with Citi Token Services is an industry-first that bridges traditional and digital rails to expand our suite of always-on client solutions. It furthers our 'network of networks' approach as we build capabilities that are interoperable so that they are multi-bank, multi-market and multi-network. This gives our clients the optionality they need, now and for the future, as the global financial infrastructure continues to rapidly evolve," said Iyer.

Thailand angle

The development also matters for Thailand's financial sector, where banks and regulators have been upgrading digital infrastructure to support trade, payments and broader economic digitisation. Cross-border settlement remains a particular focus in Asia, where businesses often operate across multiple jurisdictions and time zones and rely on the US dollar for trade and treasury flows.

Siam Commercial Bank is one of Thailand's largest commercial lenders, serving retail, small-business, corporate, and institutional customers. Its participation gives Citi a local banking partner in a market where demand for faster international settlement is likely to be strongest among corporates with regional and global operations.

Citi operates in more than 180 countries and jurisdictions and has a large international payments network, making cross-border services a core part of its institutional banking business. Its 24/7 USD Clearing system, linked here with tokenised deposits, now has a live banking client in Thailand and has completed an example transaction over a holiday weekend.