Shinhan-Citi Talks Spotlight Banks’ Push Towards Tokenized Deposits

Shinhan Chairman Jin Ok-dong met Citigroup executives including Jason Rekate, global head of corporate banking, and Citibank Korea CEO Yoo Myung-soon at Shinhan’s headquarters in central Seoul on Jan. 29, the report said. The talks addressed responses to rapid changes in the global financial environment, particularly around digital transformation and international financial infrastructure. No agreements, financial figures, or implementation timelines were disclosed.

The meeting took place as large international banks increasingly reassess tokenization in the context of wholesale payments and corporate treasury services rather than retail banking. Citi has publicly trialled fiat-to-digital currency settlement and expanded token services for cash management and trade finance - capabilities that would dovetail with tokenized deposit systems if regulators and counterparties concur.

At the same time, clearer regulatory signals around stablecoins and institutional digital assets have reduced uncertainty for banks evaluating blockchain-based infrastructure. TRM Labs, a US-based blockchain intelligence and risk-analytics firm, has noted in its policy research that improved regulatory clarity has encouraged traditional financial institutions to revisit tokenization concepts that were previously confined to pilot projects.

Beyond digital assets, Shinhan and Citi also discussed expanding cooperation in global investment banking, including potential joint participation in project financing and acquisition-related deals across the United States, Europe, and Asia. The two sides further exchanged views on upgrading foreign-currency liquidity management systems to support Shinhan’s overseas business expansion, according to the report.

“Our 20-year partnership with Citigroup is a key asset that strengthens Shinhan’s competitiveness beyond the domestic market,” Jin was quoted as saying.