Coinbase and Citi Partner to Bring Stablecoins to Institutions

Coinbase CEO Brian Armstrong celebrated a major milestone this week as Citigroup Inc. announced a partnership with the cryptocurrency platform to facilitate stablecoin payments for institutional clients. Armstrong took to social media to reflect on the progress made since Coinbase’s early days, noting that securing bank partnerships was once "nearly impossible." The collaboration now allows Citi’s institutional clients, including multinational corporations, to accept stablecoin payments at checkout through Citi’s merchant-processing services.

The partnership also enables Coinbase customers to leverage Citi’s banking capabilities while automatically converting incoming cash into stablecoins. Armstrong has been a vocal advocate for stablecoins, emphasizing their role in providing financial stability to individuals in high-inflation countries. Stablecoins are a growing revenue driver for Coinbase, with the company sharing interest income on USDC reserves with Circle Internet Group Inc.

In the second quarter, USDC held in Coinbase products reached an all-time high of $20 billion, representing over 30% of all USDC in circulation. Despite this growth, Coinbase shares closed Friday down 3.32% at $183, according to Benzinga Pro. The platform’s stock shows stronger short- and medium-term trends but weaker long-term performance.