Crypto Reporter
Shalini Nagarajan
Crypto Reporter
Shalini Nagarajan
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Citi and Coinbase plan to develop digital asset payment capabilities for institutional clients, a move that brings Wall Street plumbing closer to on-chain money.
The collaboration will focus first on making it easier to move between fiat and crypto, then broaden into payments orchestration for always-on settlement.
The initial work targets fiat pay-ins and pay-outs for Coinbase’s on and off-ramps, an area that has long frustrated institutions that trade round the clock but fund through rails that do not.
Both firms said they will share details on specific initiatives in the coming months, including options that could create alternative fiat-to-stablecoin payout methods.
Citi Bets on Stablecoins to Boost Efficiency Across Institutional Payment Systems
Citi framed the partnership as an extension of its network strategy. “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,” said Debopama Sen, who leads payments and services at Citi. She said clients want payments that feel borderless and run 24 hours a day.
Coinbase cast the tie-up as infrastructure work for the next wave of finance. “Citi’s global network and expertise in payments make them an ideal partner as we work to advance digital asset capabilities,” said Brian Foster, global head of Crypto as a Service at Coinbase. He said the goal is to simplify and expand access to digital asset payments for institutions.
The collaboration lands as stablecoins gain traction in corporate workflows. Citi said clients are asking for programmability, conditional payments and lower costs alongside speed and uptime.
Sen added that the bank is exploring solutions to enable on-chain stablecoin payments, calling stablecoins an enabler that can grow functionality for clients.
Bridging the Funding Lag Between Crypto and Traditional Banking
For crypto users, the pain point is familiar. Trading is instant, but funding often is not. Transfers over ACH and wires can take hours or days, which introduces reconciliation risk and working-capital drag. A cleaner bridge between fiat accounts and tokenized dollars could reduce breaks, cut fees, and narrow the gap between trade execution and cash settlement.
Citi’s move builds on its recent product set. The bank has rolled out Citi Token Services and 24/7 USD Clearing for institutional clients and it maintains coverage across the top e-commerce markets.
Management says the bank serves 90% of the largest e-commerce companies and most of the world’s top fintechs, which gives distribution for new payment options.
Citi-Coinbase Collaboration Seen as Blueprint for Mainstream Stablecoin Infrastructure
For Coinbase, deeper bank connectivity helps convert crypto demand into payment flows.
Streamlined on and off-ramps can lower friction for treasurers and compliance teams, while predictable orchestration can support cross-border use cases. If stablecoin payouts come online, they could provide near-instant settlement with clearer audit trails than legacy rails.
The stakes are rising as stablecoins and tokenized deposits compete to anchor digital payments. Large issuers have pushed for bank-grade custody, real-time attestations, and integration with compliance tooling. A bank-exchange partnership that standardizes funding and settlement could hasten institutional adoption without forcing firms to rebuild core systems.
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