Coinbase Lands Major Partnership with Citigroup to Enable Stablecoin Payments

Coinbase Global Inc. CEO Brian Armstrong is celebrating the company's latest achievement: a partnership with Citigroup Inc. to enable stablecoin payments for institutional clients.

The deal marks a significant milestone for Coinbase, which has 'come a long way' since its launch in 2012, according to Armstrong. Back then, securing bank partnerships was 'nearly impossible,' he recalled.

Under the partnership, Citi's institutional clients will be able to accept stablecoin payments from customers at checkout through the bank's merchant-processing services. Coinbase customers will also be able to use Citi's banking capabilities while automatically converting incoming cash into stablecoins.

Armstrong has long advocated for stablecoins, which offer 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.