Coinbase Teams Up with Citi for Bank-Grade Fiat and Stablecoin Payments

Coinbase has teamed up with Citi to bring bank-grade fiat and stablecoin payments to businesses, expanding its payments infrastructure in the process.

The collaboration allows Coinbase Virtual Accounts to be powered by Citi's Virtual Account Wallet, giving customers bank-account-like functionality, including the ability to accept, hold, and pay funds. Incoming fiat is automatically converted into stablecoins.

Citi's institutional clients can now accept stablecoin payments through Spring by Citi, without holding or managing stablecoins directly. Coinbase's infrastructure converts the digital currency into fiat, and Citi settles the funds as the bank of record.

The partnership aims to give businesses a direct route between traditional finance and digital assets, removing the need for stitching together separate banking and digital asset systems.