Citi and Coinbase Partner to Streamline Business Stablecoin Payments
Citi and Coinbase Team Up for Payment Bridge
Citigroup and Coinbase have announced a new collaboration to build infrastructure that helps businesses switch between regular money and stablecoins. A stablecoin is a type of digital currency designed to keep a steady value, usually tied to the US dollar. The two companies stated on Monday that this partnership allows Citi clients to use both types of money without needing to build their own banking and crypto systems.
The deal builds on a partnership the firms started last year to improve digital payment options for large institutions. This latest move reflects a trend where major banks are using blockchain technology—the system behind cryptocurrencies—to speed up transactions and serve customers interested in digital assets.
Two Main Parts of the Deal
- Coinbase Virtual Accounts will run on Citi's banking platform to let customers accept, hold, and send funds with bank-like features.
- Citi will handle the regulated banking side to automatically turn incoming cash into stablecoins.
- Citi's "Spring by Citi" merchant platform will use Coinbase's tools to let businesses accept stablecoin payments at checkout.
- Coinbase will convert any received stablecoins back into cash, and Citi will settle the funds so merchants do not have to hold or manage crypto directly.
What Company Leaders Said
Debopama Sen, who leads Payments and Services at Citi, noted that clients face a fast-paced global economy. She stated their goal is to create payment infrastructure that works smoothly across both traditional and digital networks.
Alec Lovett, Coinbase's Head of Infrastructure Product, said that fintech companies building on Coinbase needed a quick and compliant way to connect cash and stablecoins. He added that Citi provides this connection at a large scale.
Broader Context for Citi
This announcement follows news from last month that Citi plans to offer custody services for both traditional assets and Bitcoin later this year. Custody refers to the secure holding of assets. Additionally, Citi has been working with other major banks, including Deutsche Bank, Goldman Sachs, and Bank of America, to explore creating their own stablecoin products.
Citi also currently offers Citi Token Services, which allows for real-time international payments using tokenized deposits.
Source
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.