Citi and Coinbase will develop digital asset payment solutions targeting institutional clients, with the aim of bringing Wall Street’s financial infrastructure closer to blockchain-based transactions.
This cooperation will initially focus on facilitating the conversion between official and digital currencies, and then expand to the coordination of payment operations to settle transactions continuously and around the clock.
The initial project was built on the idea of facilitating fiat currency deposits and withdrawals on Coinbase’s deposit and withdrawal platforms, something that has long been a challenge for institutions that trade around the clock but rely on traditional financing systems that don’t operate at the same speed.
The two companies said they would share details of specific initiatives in the coming months, including options that could enable alternative payment methods, from fiat currencies to stablecoins.
We collaborate with @Citi to build the future of payments.
→Explore the possibility for Citi clients to more easily use digital assets
→ Unleash the power of stablecoins for payments
→Improvement of access and exit ramps
It’s time to make digital assets an integral part of the global economy. pic.twitter.com/jGaTZ8wPRf— Coinbase (@coinbase) October 27, 2025
Citi bets on stablecoins to improve the efficiency of institutional payment systems
Citi described the partnership as an extension of its network strategy. “With more than 300 payment settlement networks across 94 global markets, we see the collaboration with Coinbase as a natural extension of our network of networks approach,” said Debopama Sen, head of payments and services at Citi. She added that customers want payment solutions that are not limited by geographic boundaries and operate 24/7.
For its part, Coinbase sees this cooperation as an infrastructure development for the next stage of the financial sector. “Citi’s global network and payments expertise make it the ideal partner as we work to advance our digital asset capabilities,” said Brian Foster, Global Head of Cryptocurrency as a Service at Coinbase. He emphasized that the aim is to simplify and increase the use of digital assets by institutions in payment operations.
This partnership comes at a time when stablecoins are becoming increasingly popular within institutional operations. Citi said customers are demanding benefits such as programmability, contingent payments, cost reduction, speed and always-on service availability.
Sen added that the bank is exploring solutions to enable payments using stablecoins on blockchain networks, and described stablecoins as an enabler that can improve the services available to customers.
Bridging the funding gap between digital currencies and traditional banks
This problem is familiar to users of digital currencies: exchanges occur instantly, while traditional financing is often slower. Transfers via automated transfer systems or bank transfers may take hours or days, which may increase settlement risks and negatively affect working capital. Therefore, a more structured bridge between fiat currency accounts and digitally represented dollars could help reduce disruptions, reduce fees, and shorten the time between trade execution and cash settlement.
City’s decision is a continuation of its latest product range; The bank launched Citi Token Services and a 24-hour US dollar settlement service for institutional clients, and maintains its coverage of the largest e-commerce markets.
Management confirms that the bank serves 90% of the largest e-commerce companies and most of the world’s leading financial technology companies, giving it a strong distribution channel for new payment options.
The Citi and Coinbase collaboration is considered a model for stable cryptocurrency infrastructure in the public market.
For Coinbase, improving communication with banks helps turn demand for cryptocurrencies into actual payments. Simplifying cryptocurrency deposits and withdrawals can make work easier for treasury managers and compliance teams, and support international uses. If payments were enabled using stablecoins, they could enable near-instant settlement, with clearer and more transparent audit trails than those available in traditional banking systems.
The importance of this question is increasing with increasing competition between stablecoins and digitally represented deposits over who will be the cornerstone of digital payment operations. Previously, major issuers supported the idea of bank custody with instant proof of balances and the inclusion of regulatory compliance tools ensuring compliance with financial laws. Therefore, partnerships between banks and trading platforms that unify funding and settlement processes can accelerate enterprise adoption of cryptocurrencies without the need to rethink their underlying systems.
The article Citi Partners with Coinbase to Modernize Institutional Payment Processes Using Digital Assets appeared first on Cryptonews Arabic.
