Citi and Coinbase Join Forces to Bring Stablecoin Payments to Clients

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Citigroup could soon become one of the first major Wall Street banks to offer stablecoin payment services, signaling a pivotal shift in traditional finance’s adoption of blockchain-based digital dollars.

The move follows the passage of the GENIUS Act, which laid the regulatory groundwork for stablecoins in the United States earlier this year.

Citi’s Next Step in Digital Payments

According to Bloomberg, Citi has teamed up with crypto exchange Coinbase to enhance its digital asset capabilities.

The partnership will initially focus on enabling clients to move funds more easily between fiat and crypto, bridging the gap between traditional banking and blockchain ecosystems.

Debopama Sen, Citi’s head of payments, said demand is growing among the bank’s clients for programmability, conditional payments, and greater speed and efficiency in global transactions.

Sen added that Citi is actively “exploring solutions to enable onchain stablecoin payments for our clients,” noting that stablecoins could become a cornerstone of the future digital payments landscape.

“Stablecoins will be another enabler in the digital payment ecosystem and it’ll help grow the space, it’ll help grow functionality for our clients,” Sen said.

A Growing Stablecoin Market

Citi’s interest in stablecoin payments comes as the global stablecoin market continues to surge. The bank recently revised its forecast for the sector, predicting that tokenized dollars could reach $4 trillion by 2030, up from around $308 billion today.

Stablecoin market cap (Source: DefiLlama)

The rise has been nothing short of dramatic — from under $5 billion in early 2020 to over $315 billion today, according to DeFiLlama.

Stablecoins such as USDT and USDC have become central to crypto trading, cross-border payments, and DeFi ecosystems.

Also read: Citi Signals Confidence in Crypto With Institutional Custody Plans

Wall Street’s Stablecoin Awakening

The GENIUS Act’s passage has accelerated Wall Street’s race to develop stablecoin strategies ahead of its 2027 implementation.

Alongside Citi, both JPMorgan and Bank of America are reportedly exploring stablecoin-related services. Even JPMorgan CEO Jamie Dimon, long known for his crypto skepticism, has recently acknowledged that the bank “plans to be involved” in stablecoin development.

Meanwhile, investor confidence in the sector is booming. Circle, the issuer of USDC, went public earlier this year in a landmark IPO that saw its shares surge 167% on debut. The company’s market capitalization now stands at roughly $35 billion, reinforcing its role as a leader in the stablecoin economy.

Also read: Stablecoins Quietly Transform the Global Economy, Says a16z

Circle share price performance over 6 months (Source: Google Finance)

A Turning Point for Traditional Finance

Citi’s move to integrate stablecoin payments represents a turning point for mainstream banking.

As regulatory clarity grows and client demand strengthens, stablecoins are evolving from a niche crypto product into a legitimate financial infrastructure component — one that could redefine how global value moves across borders.

Author

Steven Walgenbach

Steven's passion for cryptocurrency and blockchain technology began in 2014, inspiring him to immerse himself in the field. He notably secured a top 5 world ranking in robotics. While he initially pursued a computer science degree at the University of Texas at Arlington, he chose to pause his studies after two semesters to take a more hands-on approach in advancing cryptocurrency technology. During this period, he actively worked on multiple patents related to cryptocurrency and blockchain. Additionally, Steven has explored various areas of the financial sector, including banking and financial markets, developing prototypes such as fully autonomous trading bots and intuitive interfaces that streamline blockchain integration, among other innovations.

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