Citi & Coinbase Deepen Partnership on Stablecoin Services

Citi and Coinbase have expanded their partnership to connect traditional banking services with blockchain infrastructure. Under the agreement, Coinbase has selected Citi's Virtual Account Wallet solution to power its Virtual Accounts service. This allows users to accept, hold, and pay funds in a bank-account-like manner, with incoming fiat currency automatically converted into stablecoins.

The second initiative enables Citi's institutional clients to accept stablecoin payments through Spring by Citi, the bank's payment acceptance platform. Coinbase Payments powers the stablecoin acceptance, with automatic conversion to fiat currency. Citi settles the funds as the bank of record.

Citi's Shahmir Khaliq said that the partnership is a 'pivotal step' in their Services strategy. Alec Lovett from Coinbase stated that clients building on their platform have needed a fast and compliant bridge between fiat and stablecoins, which Citi provides at scale.