Citigroup, commonly known as Citi, has established a partnership with Coinbase with the objective of increasing stablecoin usage and accelerating the adoption of digital assets among its institutional clients.
Through this collaboration, Citi will utilize Coinbase's infrastructure for managing fiat on- and off-ramps, and will employ stablecoin payment methods for its extensive global client network. Coinbase will contribute its expertise in digital assets, while Citi will offer its expansive payment and treasury systems, which span 94 markets and connect to over 300 clearing networks.
This strategic move aligns with Citi's growing emphasis on stablecoins and tokenized deposits as crucial elements of its long-term strategy. The bank is actively investigating custody and settlement services for stablecoins and funds linked to crypto assets, and has plans to issue its own stablecoin in the future.
The partnership represents a convergence of the extensive reach and regulatory experience of a global financial institution with the digital asset infrastructure of a prominent crypto exchange. This collaboration highlights the increasing mainstream acceptance of stablecoins, not only for trading purposes but also for applications in payments, settlement, and treasury operations.