Citi and Coinbase Unite to Bring Stablecoin Payments to Corporate Clients

Financial giant Citi has expanded its collaboration with Coinbase to enable its corporate clients to accept stablecoin payments. The new system will connect Citi's Spring by Citi payment infrastructure with Coinbase Payments, allowing businesses to receive stablecoins from customers during the payment process.

The received digital tokens will be automatically converted into fiat currencies such as dollars, and Citi will handle the final settlement of the funds. This structure eliminates the need for businesses to create cryptocurrency wallets or hold stablecoins on their balance sheets.

From the company's perspective, transactions will be settled in traditional currency, while payers can use stablecoins. The speed of blockchain-based payments is combined with the accounting and consensus infrastructure of the classic banking system in a single transaction.