Coinbase to Assist Citi in Integrating Stablecoin Payments

Citi and Coinbase to explore stablecoin payments for corporate clients.

Investment bank Citi, in partnership with Coinbase, will explore the potential for implementing stablecoin payments for corporate clients, according to Bloomberg.

The initial collaboration will focus on simplifying the conversion of cryptocurrencies to fiat and vice versa for companies, including in markets outside the United States.

Depositing and withdrawing funds from crypto applications and accounts has historically been a “stumbling block” for both retail and institutional users of digital assets. Although these markets operate 24/7, the need to use traditional systems results in delays of hours, days, or even weeks.

According to Citi’s head of payments, Debopama Sen, the bank’s clients demand “programmable and condition-defined transactions, as well as other aspects like cost, speed, and efficiency,” in addition to round-the-clock capabilities.

To this end, Citi will soon explore solutions that enable operations in “stablecoins,” Sen added.

“Stablecoins will become another tool in the digital payments ecosystem, helping to expand this space and add functionality for our clients,” she said.

Brian Foster, head of crypto services at Coinbase, noted that the exchange collaborates with over 250 banks and financial institutions worldwide. The “specialized infrastructure” developed by the company over many years is key to successful collaboration.

Foster emphasized that institutional partners are interested in a wide range of services, including spot and derivatives trading, custodial operations, staking, and payments. In his view, the interest of major players in traditional finance in the crypto industry has been driven by factors such as the spread of stablecoin payments, the popularity of ETFs based on digital assets, and the expansion of the RWA segment.

Earlier, Citi forecasted that by 2030, tokenized assets could account for up to 10% of global market turnover, with bank-issued “stablecoins” being the main driver of this trend.