Partnership Structure and Services for Institutional Clients

Citigroup has teamed up with Coinbase to expand access to stablecoin payments for its corporate and institutional clients. Under the arrangement, clients can accept payments in stablecoins via Citi’s merchant-acquiring infrastructure. Coinbase provides the underlying payment channel and blockchain rails, while Citi manages the banking relationship, account records, and final settlement.

Stablecoin receipts convert automatically into fiat currency at the point of transaction. Citi also handles fund movements and maintains the custodial role for the settlement process. On the Coinbase side, clients gain access to traditional banking tools for receiving, holding, and sending funds using services that operate similarly to conventional bank accounts. Cash deposits into those tools convert automatically into stablecoins, which can be held on the Coinbase platform.

The collaboration builds on earlier joint work that began in October 2025 around fiat deposits and withdrawals tied to Coinbase’s on- and off-ramps. It marks a step toward integrating digital-dollar payment rails into mainstream corporate finance.

Operational Details and Conversion Mechanics

When a customer pays a Citi institutional client using a stablecoin, the digital asset transfers on-chain through Coinbase’s network. Citi then acts as the intermediary bank to convert the stablecoin to fiat, complete the settlement, and update the client’s account records. This setup allows large multinational corporations to receive payments without managing their own crypto infrastructure or holding digital assets directly.

Conversely, Coinbase’s payment customers can use Citi’s banking services to move funds in and out, with automatic conversion between stablecoins and cash as needed. Stablecoin balances held through Coinbase currently earn an annualized reward of 3.75%.

Client Access and Broader Implications

The service targets Citi’s institutional clients, including large multinational corporations that handle high-volume, cross-border transactions. It enables faster settlement and fewer intermediaries compared with traditional payment methods, while keeping everything within a regulated banking framework. Coinbase clients also benefit from the connection to Citi’s infrastructure without needing to switch platforms.

This arrangement represents one of the clearest integrations of stablecoin technology into core banking operations. It provides companies with a familiar way to handle digital-dollar payments while relying on established banking services for compliance and custody. The partnership signals continued evolution in how institutions and corporations interact with crypto rails.