Citi Partners With Coinbase to Enable Stablecoin Payments for Corporate Clients
Citigroup has partnered with Coinbase to enable corporate clients, including large multinational companies, to accept stablecoin payments through Citi’s merchant acquiring services, according to The Wall Street Journal and information shared by Wu Blockchain.
Under the arrangement, Coinbase will provide the stablecoin payment rails and underlying blockchain infrastructure, while Citi will serve as the bank of record for settlement. The structure is designed to allow corporate merchants to accept stablecoin payments while settling through Citi’s banking infrastructure.
Coinbase to Provide Stablecoin Payment Infrastructure
The partnership will use Coinbase’s infrastructure to process stablecoin payments for Citi’s corporate clients. Stablecoins received through the payment system will be automatically converted into fiat currency, with Citi handling the settlement as the bank of record.
The arrangement brings together Citi’s existing merchant acquiring and banking services with Coinbase’s blockchain and stablecoin payment infrastructure. The companies’ roles separate the payment technology from the traditional banking function used to settle the transactions.
The service is intended to support corporate clients, including large multinational companies, that want to accept stablecoin payments through Citi’s merchant acquiring services.
Citi Banking Services Added to Coinbase Payments
Coinbase payments clients will also be able to use Citi’s banking capabilities to receive, hold and make payments through account-like tools, according to the information shared by Wu Blockchain.
The setup extends beyond accepting stablecoins at the point of payment. Cash received can be automatically converted into stablecoins and held on Coinbase, creating a link between traditional banking functions and Coinbase’s digital-asset infrastructure.
USDC currently earns up to 3.75% in annual rewards when held on Coinbase, according to the source. The reported rate applies to USDC held through Coinbase and is presented as part of the platform’s existing offering.
Traditional Banking Meets Stablecoin Infrastructure
The partnership reflects a structure in which a traditional bank remains responsible for settlement while a crypto-focused company supplies the blockchain infrastructure supporting stablecoin payments.
For corporate users, the arrangement combines Citi’s merchant acquiring and banking capabilities with Coinbase’s stablecoin payment rails. The reported automatic conversion of stablecoins into fiat also allows merchants to receive stablecoin payments markets without retaining the assets as stablecoins for settlement.
The service will therefore rely on both companies for different parts of the payment process, with Coinbase providing the underlying stablecoin infrastructure and Citi acting as the bank of record for settlement.
Writer: Victoria HaleTechnology & Blockchain WriterVictoria Hale writes about blockchain technology, digital infrastructure, and the intersection of emerging technologies with finance. Her articles explore how new protocols and systems are shaping the evolving digital economy.She prioritises clarity and accuracy when explaining technical developments to a general audience.
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