Citigroup (C) announced on Tuesday that it will be collaborating with Coinbase (COIN) in an effort to develop digital asset payment tools for the bank’s institutional clients.
Citi said that the initial phase of the partnership will be focusing on fiat pay-ins/pay-outs — or the movement of traditional currency into and out of digital asset or crypto ecosystems — as well as “payments orchestration.” The effort will be supported by Coinbase’s on/off ramps.
The bank added that it will provide additional details in the coming months on specific initiatives the companies will be undertaking, “including the exploration of creating alternative fiat to onchain stablecoin payout methods.”
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The collaboration with Coinbase will allow Citi to provide 24/7 digital asset banking services to its institutional clients.
“The financial landscape is changing fast, and we’re thrilled to join Coinbase to explore new and innovative payment options for our global clients,” Debopama Sen, head of Payments Services for Citi, said in a statement.
“With more than 300 payment clearing networks across 94 markets globally, we see collaborating with Coinbase as a natural extension of our ‘network of networks’ approach, further supporting our clients to make payments as if there were no borders.”
Citi CEO Jane Fraser said on the bank’s Q3 earnings call earlier this month that there has been “an overfocus on stablecoins at the moment” in response to an analyst’s question about the pace of the bank’s stablecoin adoption.
“For our client base, the institutional client base, we see tokenized deposits as delivering what the client needs, and this is an area that we’ve invested in most heavily,” Fraser said.
“And what the clients are after is real-time money movement with minimal to no friction and low cost.”
Nonetheless,Citigroup released a report in September in which it revised its stablecoin total issuance base case forecast from $1.6 trillion to $1.9 trillion, with a bull case scenario also revised up to $4 trillion from $3.7 trillion.
Brian Foster, global head of Crypto as a Service at Coinbase, said in a statement that Citi’s “expertise in payments make them an ideal partner as we work to advance digital asset capabilities.”
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“This collaboration reflects our commitment to building the infrastructure needed for the next generation of financial services,” Foster added.
The mainstreaming of crypto is evident in the partnerships that Coinbase is landing with some of the giants of Wall Street. The company had already linked up with BlackRock (BLK) a few years ago, and this past summer it joined forces with JPMorgan Chase (JPM), allowing Chase cardholders to make purchases directly on Coinbase.
And starting in 2026, Chase Ultimate Rewards points will become redeemable for USDC, the first time a major credit card has converted loyalty points into crypto rewards.
Next year, customers will also be able to directly link Chase accounts to Coinbase.
Citi’s stock gained 2.2% on Monday, while Coinbase’s shares rose nearly 2%.
Source: investorsobserver.com
