Citi Taps Coinbase for Stablecoin Tech in Digital Asset Partnership

Citi and Coinbase are teaming up on digital assets, with Citi choosing Coinbase to provide technology for stablecoins. This move comes as the world shifts from analog finance to digital.

The new feature will allow both institutions and consumers to convert fiat currency to digital currency and vice versa using stablecoin payment rails provided by Coinbase. Citi is expected to hold digital dollars that can earn a 3.75% APY, addressing concerns about stablecoins generating yield.

Stablecoin usage has been on the rise, with activity in payments and transfers jumping by an estimated 42-63% since January 1st. Cross-border flows have increased by 78% over the past 12 months ending in June 2026, according to Chainalysis.

Brett Tejpaul, head of Coinbase Institutional, states that this collaboration will enable faster, cheaper, and better payments globally while accelerating the full potential of stablecoins. Citi is also expanding its existing blockchain services, including tokenization, from seven jurisdictions to an unknown number.