As the GENIUS Act has spurred rampant speculation about banks issuing stablecoins, Citigroup and JPMorganChase are using the underlying technology to gain a digital asset foothold among corporate users. Payoneer this week added technology from Citi to enhance treasury transfers by using Citi’s Token Services, the bank’s blockchain unit. This follows JPMorganChase’s launch of its deposit token, an alternative to stablecoins that also uses distributed ledger technology to speed transaction processing. The banks’ moves position them to leverage their giant payment businesses to offer a range of digital asset services, including stablecoins, placing pressure on other banks to prepare for a range of new products. “Banks, regardless of size, need a stablecoin strategy now,” said James Wester, director of crypto for Javelin Strategy & Research. “That doesn’t mean they need every technical answer, but they do need a clear vision of where they fit and how they will connect their customers, partners, and developers into the next generation of money movement.” Payoneer, a New York-based company that processes B2B and consumer-to-business transfers, will use Citi’s blockchain to move money across Payoneer-owned accounts, reducing the need for traditional payment methods. “Money movements in legacy systems have cut-off times,” Derek Green, treasurer at Payoneer, told American Banker. “Addressing that is a powerful first step in the value of blockchain.” By using Citi Token Services, Payoneer avoids restricted bank hours and closures on weekends and holidays. Payoneer hopes the collaboration will ensure “instant liquidity” through 24/7 transfers between Payoneer users in the U.S., U.K. and Singapore. Using a blockchain reduces cash management and foreign exchange risk; and an application programming interface enables integration with a business’s existing treasury and payment systems, avoiding infrastructure updates, according to Payoneer. The Citi deal helps Payoneer accelerate its ongoing geographic and product expansion. Payoneer’s 2020 acquisition of German payment firm Optile allowed it to integrate payments orchestration with cloud-based technology to power international business payments while adding more countries to its network. “Given our geographic reach [Citi] is a way to make transfers less complex,” Green said. While Payoneer’s partnership with Citi uses tokenized deposits, the use of stablecoins for transactions is a possibility, according to Green. “The blockchain is really the fundamental technology here,” Green said. “The stablecoins would be the mechanism that would facilitate the outcome.” Like most banks and payment companies, Payoneer is still examining how stablecoins would best suit its business. Getting on board with blockchain-powered payment.