Citi, Coinbase Partner on Stablecoin Infrastructure for Businesses

Citi and Coinbase Expand Digital Asset Collaboration

Citigroup and Coinbase are deepening their partnership to develop stablecoin infrastructure aimed at simplifying digital asset payments for businesses. The joint effort, announced Monday, will allow Citi’s clients to seamlessly transition between traditional finance and stablecoins without managing separate banking and crypto systems.

The collaboration has two key components. First, Coinbase Virtual Accounts, leveraging Citi’s banking-as-a-service platform, will provide Coinbase payments customers with bank-account-like functionalities for accepting, holding, and sending funds. Citi will handle the conversion of incoming fiat currency into stablecoins. Second, Citi’s Spring by Citi merchant platform will integrate Coinbase’s infrastructure to enable enterprise clients to accept stablecoin payments directly at checkout. Coinbase will then convert those stablecoins back into fiat, with Citi handling settlement – meaning merchants won’t directly manage cryptocurrency.

This move reflects a broader trend of banks exploring blockchain technology to improve efficiency and cater to growing demand from crypto-focused customers. Last month, Citi announced plans to offer institutional investors a unified custody solution for both traditional assets and Bitcoin. The firm also participates in efforts with Deutsche Bank, Goldman Sachs, and Bank of America to explore issuing a joint stablecoin product. Alec Lovett, Coinbase’s Head of Infrastructure Product, stated the partnership provides a “fast, compliant bridge between fiat and stablecoins, and Citi gives us that at scale.”

Citi’s existing blockchain offerings include Citi Token Services, which facilitates real-time cross-border payments using tokenized deposits.

Source: Bitcoin Magazine