Citi, Coinbase Unite Stablecoin Payments with Traditional Banking

Citi and Coinbase have teamed up to offer institutional clients in the United States a seamless way to convert stablecoins into dollars and vice versa. This service, announced on September 29, allows Citi business clients to accept payments in stablecoins like USDC without holding any cryptocurrencies directly. Behind the scenes, Coinbase converts the stablecoins into dollars, which are then deposited into the client's account as usual.

The flow works both ways: companies building on Coinbase can also open accounts that function like bank accounts, powered by Citi's banking software. When dollars are received, they are automatically converted into stablecoins. This integration aims to fold stablecoin payments into traditional banking rather than treating them as a separate cryptocurrency workflow.

More than 150 million people worldwide hold stablecoins, according to Coinbase. The partnership gives businesses a way to accept money from these individuals without needing to join the crypto side. However, Citi and Coinbase have not disclosed which stablecoins are supported beyond USDC or how many clients are currently using this service.

The companies only mentioned that the service is available in the United States for now, with no details on future expansions. This move highlights the growing trend of traditional financial institutions embracing cryptocurrencies and blockchain technology.