Citigroup Inc. (Citi) and the cryptocurrency exchange platform Coinbase Global Inc. announced plans to collaborate on digital asset payment capabilities as both companies seek to solidify their roles as leaders in the payment solutions marketplace.
Through the partnership, Citi said it is seeking to improve its payment capabilities for institutional clients with an eye toward appealing to additional international clients in the future, according to a company press release.
“The financial landscape is changing fast, and we’re thrilled to join Coinbase to explore new and innovative payment options for our global clients,” Citi Head of Payments, Services Debopama Sen said in the release. “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, further supporting our clients to make payments as if there were no borders.”
For the initial phase of the collaboration, the companies plan to focus on developing an ecosystem that accounts for both fiat currency – government-issued money that is not backed by a physical commodity – and digital assets.
Specifical, Citi said it plans to hone in on “fiat pay-ins/pay-outs, supporting Coinbase’s on/off-ramps the bridge between traditional fiat and digital asset ecosystems – along with payments orchestration.”
In the coming months, the companies plan to share additional details regarding specific initiatives, such as exploring the possibility of creating alternative payout methods that convert fiat currency to on-chain stablecoins.
“Citi’s global network and expertise in payments make them an ideal partner as we work to advance digital asset capabilities,” Coinbase, Crypto as a Service, Global Head Brian Foster said in the release. “By combining their reach with Coinbase’s leadership in digital assets, we’re creating solutions that can simplify and expand access to digital asset payments. This collaboration reflects our commitment to building the infrastructure needed for the next generation of financial services.”
The announcement came on the coattails of the passage of the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS), which was signed into law in July. The legislation established federal regulatory guidelines for stablecoins and is scheduled for implementation in January 2027. The legislation has been referred to as a means of opening a door for more collaboration between traditional banks and digital asset companies. In August, the U.S. Treasury announced it was seeking input on implentating the new law.