Citi and Coinbase Team Up for Stablecoin Payments

Citi, one of the world's largest banks, is expanding its digital asset payment capabilities in partnership with Coinbase. According to The Wall Street Journal, Citi will allow its institutional clients, including multinational corporations, to accept stablecoin payments through its merchant-processing services.

The partnership between Citi and Coinbase will enable customers to pay using stablecoins, which are pegged to government-issued currencies like the US dollar. Coinbase will provide the payment rails and blockchain infrastructure, automatically converting these tokens into cash, while Citi settles the proceeds as the bank of record.

This collaboration builds on a previous agreement announced in October between Citi and Coinbase. The partnership aims to bridge the gap between digital assets and traditional economic activity, which still predominantly uses government-issued currencies.