Citigroup and Coinbase develop stablecoin payments for institutions

Citigroup and Coinbase announced on Oct. 27 that they will collaborate to develop stablecoin-based payment solutions for Citigroup’s institutional clients, aiming to simplify transfers between traditional fiat accounts and crypto liquidity and to enable faster, around-the-clock settlement for crossborder and enterprise transactions. The initial phase will focus on integrating fiat pay-ins and payouts through Coinbase’s on- and offramps and exploring ways to convert fiat into stablecoins for corporate use.

Citi said the partnership responds to client demand for programmable, conditional and continuously available payment options that traditional banking rails often cannot provide. Debopama Sen, who leads payments and services at Citigroup, said clients want payment systems that operate 24 hours a day and offer greater flexibility than conventional rails. Brian Foster, global head of Crypto as a Service at Coinbase, said the firms are combining their reach and infrastructure to create solutions that "can simplify and expand access to digital asset payments."

The collaboration builds on recent moves by both firms. Citigroup has rolled out blockchain-based internal tools such as...