Citi and Coinbase Bridge Fiat and Stablecoin Payments for Businesses

A major US bank, Citi, has expanded its partnership with Coinbase to bridge the gap between traditional bank money and stablecoin payments. This collaboration allows businesses to move seamlessly between the two without having to juggle separate crypto systems.

Two new products, Coinbase Virtual Accounts and Spring by Citi, have been launched to connect fiat banking to stablecoin payments. Coinbase Virtual Accounts use Citi's Virtual Account Wallet, which provides bank-account-like features to payments customers. Incoming fiat is automatically converted into stablecoins, making it easier for customers to manage their finances.

Spring by Citi allows institutional clients to accept stablecoin payments at checkout through Coinbase Payments. The payments are automatically converted to fiat, and Citi settles as the bank of record. This means that merchants can reach over 150 million stablecoin holders without having to hold, custody, or manage digital assets themselves.

Clients building on Coinbase have long needed a fast and compliant bridge between fiat and stablecoins, according to Coinbase's Alec Lovett, head of infrastructure product. Citi gives them that at scale.