Citi and Coinbase Unite Forces for Stablecoin-Fiat Conversions

Coinbase has partnered with Citi to expand its payments infrastructure, allowing enterprise merchants and customers to accept and convert stablecoins into fiat currency. The partnership gives businesses bank-account-like functionality while using stablecoins underneath it.

The Virtual Account Wallet provided by Citi will power Coinbase's Virtual Accounts, which give payments customers the ability to accept, hold, and pay funds in a regulated banking infrastructure.

Citi's institutional clients can now accept stablecoin payments at checkout without holding or managing them directly. The digital currency is automatically converted into fiat, and Citi settles the funds as the bank of record.