- Citi joins Coinbase to improve digital payments for institutional clients through secure blockchain technology.
- The deal focuses on stablecoins to support instant and continuous global transactions for large businesses.
- Citi expands its digital plan with crypto custody and faster payment systems across global markets.
Citigroup has entered a strategic partnership with Coinbase to develop digital asset payment services for institutional clients. The collaboration aims to link traditional banking systems with digital finance. The two companies announced the alliance in a joint statement on Monday. The project aims to enhance the efficiency and the versatility of cross-border payments by using blockchain technology.
The initial step will focus on fiat pay-ins and pay-outs, which will strengthen the on- and off-ramp possibilities of Coinbase. It also seeks to optimize payment orchestration for faster transaction processing. The effort reflects Citi’s growing commitment to digital asset infrastructure and its long-term goal of offering round-the-clock payment access for clients.
Focus on Stablecoins and 24/7 Payment Capabilities
Citi and Coinbase are considering using stablecoins to streamline corporate payments. By facilitating almost real-time transfer and real-time settlement, stablecoins will address the time lag within the conventional banking system. The initiative will also study alternative fiat-to-stablecoin conversion methods to improve liquidity management.
Citi’s payments division plans to test on-chain stablecoin transactions soon. The bank believes that blockchain-based systems can deliver programmable and conditional payments. This approach supports businesses operating across different time zones and markets, ensuring uninterrupted transaction flow even on weekends.
Integration with Citi’s Broader Digital Strategy
The partnership builds on Citi’s existing digital efforts, including its Citi Token Services and USD Clearing platforms. These services already allow tokenized deposit transfers across the bank’s global network. It was recently revealed that Global banks led by Citigroup and Goldman Sachs funded 345 blockchain deals between 2020 and 2024. Citi currently serves most leading e-commerce companies and major fintechs, giving it a strong base to integrate blockchain solutions.
In August, Citigroup announced plans to offer custody for stablecoin assets and expand into crypto ETFs and blockchain payments. The collaboration with Coinbase aligns with Citi’s “network of networks” strategy. The bank aims to create interoperable payment systems across 94 markets. It also intends to introduce crypto custody services in 2026, which will enable clients to store such digital currencies as bitcoin and ether. Earlier this year, Gemini confidentially filed for an IPO with Goldman Sachs and Citigroup.
Market Reaction and Industry Outlook
Shares of both companies moved modestly following the announcement. Citi’s stock traded near $98.60, while Coinbase shares hovered around $318.50. Analysts consider the venture as a move to expand the use of blockchain in financial transactions.
The market of stablecoins is also growing worldwide, and it is believed that it might be over 1 trillion within five years. Blockchain infrastructure is becoming a popular investment amongst financial institutions, such as large banks and asset managers. This change can be seen in the Citi-Coinbase project, which seeks to upgrade payment networks and connect the old and new finance.
The partnership is viewed by both companies as a chance to improve institutional payment systems and build the basis of digital money solutions.
