Coinbase Citi Partnership Marks Major Milestone in Stablecoin Adoption
Coinbase Global Inc. CEO Brian Armstrong celebrated the company's partnership with Citigroup Inc., saying it has 'come a long way' since its launch in 2012. Armstrong recalled that securing bank partnerships back then was 'nearly impossible.'
The partnership enables Citi's institutional clients to accept stablecoin payments from customers through the bank's merchant-processing services. This also allows Coinbase customers to use Citi's banking capabilities while automatically converting incoming cash into stablecoins.
Armstrong has been a strong advocate for stablecoins, which he sees as a simple way for people in high-inflation countries to access more stable global currencies without emigrating. The USDC held in Coinbase products reached an all-time high of $20 billion in the second quarter, accounting for more than 30% of all USDC in circulation.
Coinbase shares finished Friday down 3.32% at $183, according to Benzinga Pro. The company's interest income on the reserve assets backing USDC is shared with Circle Internet Group Inc.