Citi & Coinbase Unite Corporate Fiat Payments With Stablecoin Rails

Citi and Coinbase have announced an expanded partnership to connect corporate fiat payments with stablecoin rails.

The new infrastructure will enable businesses to move between traditional bank money and stablecoins without building separate systems for each.

Coinbase will use Citi's Virtual Account Wallet to power its virtual accounts, giving business customers bank-account-like functionality for receiving, holding and paying fiat currencies. Incoming fiat can then be converted automatically into stablecoins through Coinbase's payments infrastructure.

The arrangement also works in the opposite direction: Citi's institutional clients will be able to accept stablecoin payments through Spring by Citi, its merchant acquiring and payment acceptance platform. Coinbase will provide the digital asset payment rails and convert the stablecoins into fiat, while Citi handles settlement as the bank of record.