Citi teams up with Coinbase to offer stablecoin payment services for multinational firms

Citi will allow its institutional clients, including large multinational companies, to accept stablecoin payments through its merchant-processing services, relying on Coinbase to handle the blockchain conversion of those tokens into U.S. dollars. Coinbase will manage the stablecoin custody and provide the technology that enables a seamless exchange, offering a yield-like return of 3.75% per year. Citi acts as the bank of record, settling the fiat proceeds, while Coinbase’s payment customers can use Citi’s banking infrastructure to sweep incoming dollars into stablecoins tied to the dollar.

Both parties say the arrangement will speed up and lower the cost of cross-border payments. The partnership follows the Senate’s failure to pass the Clarity Act, a crypto-focused bill, but Citi says regulatory constraints do not hinder its plans. Additionally, Citi announced the expansion of its token services platform to Japan and the United Arab Emirates, bringing the service to seven regions worldwide.