Coinbase Teams with Citi on Fiat-to-Stablecoin Business Payments
Coinbase has partnered with Citi to offer businesses fiat and stablecoin payment services. The companies announced two products on September 28, both launching first in the United States.
The first product is Coinbase Virtual Accounts, which runs on Citi's Virtual Account Wallet. This provides 'bank-account-like functionality' for businesses, allowing them to accept, hold, and pay funds with incoming fiat automatically converted into stablecoins.
Citi acts as the bank of record and settles the fiat side, while Coinbase converts the incoming digital currency into fiat and Citi settles the funds with the merchant.
The second product is a payment acceptance platform for merchants on Spring by Citi, which will allow them to take stablecoin payments at checkout without holding stablecoins themselves. This opens up Citi's enterprise merchants to a market of over 150 million stablecoin holders.