Citi and Coinbase team up to accelerate stablecoin payments

Citigroup and Coinbase team up to connect banking and blockchain

Citigroup is deepening its ties to the crypto ecosystem. The U.S. banking giant has partnered with Coinbase to develop new payment infrastructure for its institutional clients. The goal is to facilitate seamless transfers between traditional currencies and digital assets, with an eye toward integrating stablecoins more deeply into global payment rails.

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Initially, the partnership will focus on "on-ramps" and "off-ramps"—the systems used to convert dollars or other fiat currencies into digital assets and back again. Citi and Coinbase also aim to improve payment orchestration, making these operations available around the clock.

JUST IN: 🇺🇸 $2.8 trillion Citi partners with Coinbase to enable stablecoin payments for institutional clients. pic.twitter.com/KbNn9vvx2k

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Citi already operates over 300 clearing networks across 94 markets. For its part, Coinbase brings its crypto infrastructure, custody technology, and deep access to various blockchains.

This alliance seeks to meet the needs of international corporations, particularly by enabling them to move funds outside of traditional banking hours. Another key objective is to reduce the friction inherent in cross-border payments.

Stablecoins are a primary use case being explored. Citi and Coinbase are investigating solutions that allow for the direct conversion of fiat currency into stablecoins for blockchain transfers. Coinbase is increasingly positioning USDC as a core asset for this institutional infrastructure.

Citigroup continues its crypto push

For Citi, this partnership is part of a broader strategy. The bank has been working on digital assets for several years and already boasts Citi Token Services, an infrastructure designed for transfers and liquidity management for institutional clients.

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Major banks are racing to determine which technology will power the payments of the future. Stablecoins promise near-instant settlement that is available 24/7, whereas the current international banking system still relies heavily on limited operating hours and a complex network of intermediaries.

This shift also creates a competitive landscape for banks. The Wall Street Journal recently reported that Citigroup, Bank of America, Goldman Sachs, and other financial giants are part of a 21-company consortium developing their own stablecoin, with a potential launch in the first half of 2027.

The partnership with Coinbase reflects a two-pronged strategy: leveraging the existing infrastructure of an established crypto player while simultaneously building solutions that remain under direct banking-sector control.

Sources: Wall Street Journal