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FIGR_HELOC $1.06Citi and Coinbase Launch Stablecoin Payment Service for Corporates
The partnership lets Citi's institutional clients accept stablecoin payments with automatic fiat conversion and settlement via Citi's banking rails.
The short answer
Citigroup and Coinbase have launched a joint stablecoin payment service for corporate clients. The offering lets Citi's business customers accept stablecoin payments at checkout, with Coinbase handling automatic fiat conversion and Citi completing regulated settlement. The service is initially available in the United States, with additional features planned for future rollout.
What happened
Citigroup and Coinbase have launched a joint stablecoin payment service for corporate and institutional clients. The offering is accessible via Citi's Spring by Citi merchant platform, letting business customers accept stablecoin payments at checkout. Coinbase powers the underlying payment infrastructure and automatically converts received stablecoins to fiat, while Citi acts as the regulated settlement bank of record. Merchants using the service do not need to hold or manage crypto assets directly to offer digital payment options.
The partnership also integrates Citi's Virtual Account Wallet to support Coinbase Virtual Accounts for business customers. These accounts offer bank-style services for receiving, holding, and transferring funds, with Coinbase's platform enabling seamless conversion between fiat and stablecoins. Citi supplies the regulated banking platform powering the virtual accounts, while Coinbase handles the digital asset layer and conversion. The service launches first in the United States, with more features planned for the coming months.
Why it matters
The collaboration removes a key barrier for large merchants seeking to offer digital payment options without building in-house crypto infrastructure. Citi clients can use stablecoins for payments while keeping standard fiat settlement workflows, and Coinbase customers gain access to bank-grade fiat rails. Debopama Sen, Citi's Head of Payments, said the bank aims to build "seamless" and "interoperable" infrastructure across traditional and digital payment networks. Alec Lovett, Coinbase's Head of Infrastructure Product, added the setup creates a fast, compliant link between fiat and stablecoins for businesses, cutting the need for separate payment stacks.
The partnership aligns with broader institutional adoption of stablecoins for corporate use cases. Citi has previously forecast that stablecoin issuance could reach $1.9 trillion by 2030 in its base case, and the bank is already running its own blockchain-based token service for corporate customers in Japan and the United Arab Emirates. Coinbase, which holds roughly $246 billion in assets on its platform, stands to expand its institutional payments footprint through the collaboration.
What the data shows
Key data tied to the partnership includes Citi's base case forecast that global stablecoin issuance could reach $1.9 trillion by 2030, and Coinbase's reported $246 billion in assets held on its platform.
Background
Prior to this partnership, Citi had already launched its blockchain-based token service for corporate customers in Japan and the United Arab Emirates. The bank operates across 94 markets and more than 300 clearing systems globally, giving it broad reach for corporate payment services.
What is still unclear
- The public announcements do not specify which stablecoins are eligible for the payment service, nor do they outline fee structures for merchant users.
Questions readers ask
Which Citi clients can use the new stablecoin payment service?
The service is designed for Citi's institutional and corporate clients that use its Spring by Citi merchant processing platform. These clients can accept stablecoin payments at checkout without needing to build their own crypto infrastructure.
How does stablecoin conversion and settlement work for merchants?
When a customer pays with a stablecoin, Coinbase automatically converts the digital asset to fiat currency. Citi then settles the fiat funds to the merchant as the bank of record, so merchants never hold or manage crypto directly.
Where is the stablecoin payment service available initially?
The partnership's service is launching first in the United States, with additional institutional payment features planned for rollout in the coming months.
Sources
- 1 CoinpediaCiti Partners With Coinbase to Enable Stablecoin Payments · 28 Sep, 11:58 UTC
- 2 CoinGapeCoinbase Partners With Citi to Expand Stablecoin Payment Access for Corporates · 28 Sep, 15:14 UTC
- 3 BlockonomiCitigroup (C) Stock: Drops as Coinbase Deal Targets Stablecoin Payments · 28 Sep, 15:48 UTC
