Citigroup and Coinbase have expanded their digital asset partnership to enable stablecoin payments for corporate clients. Under the collaboration, institutional merchants using Spring by Citi can accept stablecoins at checkout, with Coinbase automatically converting the tokens to fiat for settlement. Conversely, Coinbase Virtual Accounts will use Citigroup's banking-as-a-service infrastructure to automatically convert incoming fiat into stablecoins. The U.S.-first initiative aims to bridge traditional finance and digital assets for over 150 million stablecoin holders globally.
Citigroup and Coinbase partnership expansion
- ▪The stablecoin payment initiatives from Citigroup and Coinbase will launch first in the United States, targeting a global audience of more than 150 million stablecoin holders.
- ▪Citigroup and Coinbase's expanded stablecoin-payments partnership builds on an initial collaboration between Citigroup and Coinbase first announced in October 2025 that focused on fiat-to-crypto payment infrastructure
- ▪Citigroup and Coinbase announced an expansion of their digital asset partnership on September 28, 2026, to enable stablecoin payment capabilities for corporate and institutional clients.
- ▪Citigroup's institutional clients can accept stablecoin payments through Spring by Citi, with Coinbase handling the rails and automatically converting them to fiat so merchants settle without holding digital assets.
- ▪Citigroup and Coinbase did not disclose specific details regarding which stablecoins or blockchain networks will be supported in their stablecoin payment partnership, nor did they provide a launch timeline or pricing
Coinbase Virtual Accounts
- ▪US dollar-pegged stablecoins held at Coinbase through Coinbase Virtual Accounts' account structure currently earn a 3.75% annual reward
- ▪Coinbase utilizes Citigroup's Virtual Account Wallet and banking-as-a-service to power Coinbase Virtual Accounts, automatically converting deposited fiat into stablecoins for customers to accept, hold, and pay out funds.
Citigroup's other digital asset initiatives
- ▪Citigroup is among 21 financial firms that committed on September 1, 2026, to form a company to issue a dollar-backed stablecoin targeting the first half of 2027.
- ▪Citigroup launched Citi Token Services, a blockchain-based platform using tokenized institutional deposits to support 24/7 cross-border liquidity, which has expanded to seven global markets including Japan and the UAE.
- ▪Citigroup announced plans in August 2026 to launch native digital asset custody services, starting with Bitcoin, before the end of 2026 under its Custody+ platform.
Debatable claims
- ▪Traditional banks should integrate stablecoins into their corporate payment networks
- ▪Partnering with crypto exchanges is the best way for major banks to adopt digital assets
- ▪Auto-converting stablecoins to fiat protects corporate merchants from cryptocurrency volatility
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