- Coinbase is expanding its partnership with Citi to give businesses a direct connection between traditional banking infrastructure and stablecoin payments.
- Citi’s Virtual Account Wallet will power Coinbase Virtual Accounts, allowing customers to accept, hold and send funds while incoming fiat can be automatically converted into stablecoins.
- Coinbase’s payments infrastructure will also be integrated with Spring by Citi, allowing institutional merchants to accept stablecoin payments without directly holding or managing the digital assets.
Coinbase is expanding its partnership with Citi as the two companies move to connect traditional banking infrastructure with stablecoin payments for businesses.
Under the expanded collaboration, Citi’s Virtual Account Wallet will power Coinbase Virtual Accounts.
The accounts are designed to provide bank-account-like functionality for accepting, holding and sending funds, while incoming fiat can be automatically converted into stablecoins.
Citi will provide the regulated banking infrastructure behind the service through its Banking-as-a-Service offering.
Businesses Can Connect Fiat and Stablecoins
The arrangement is designed to reduce the need for companies to build separate systems for traditional banking and digital asset payments.
Businesses using Coinbase Virtual Accounts will be able to interact with fiat and stablecoins through a more integrated setup.
Citi will provide the banking infrastructure while Coinbase handles the digital asset side of the transactions.
The companies said the structure could make it easier for businesses to use stablecoins alongside their existing financial operations.
Spring by Citi Adds Stablecoin Payments
Coinbase’s payments infrastructure will also be integrated into Spring by Citi, the bank’s payment acceptance platform.
This will allow Citi’s institutional clients to accept stablecoin payments from customers without having to directly hold or manage stablecoins themselves.
Coinbase will handle the stablecoin portion of each transaction and automatically convert the payment into fiat.
Citi will then settle the funds to merchants while acting as the bank of record.
The companies said the new capability gives institutional clients another way to accept digital payments while keeping the operational complexity of stablecoin management outside their own systems.
Stablecoin Adoption Expands Across Banking
The new capabilities will initially launch in the United States, with additional features expected in the coming months.
The partnership comes as banks and payment companies increasingly explore stablecoins for payments, settlement and cross-border transfers.
Earlier this month, Coinbase partnered with Moov to bring stablecoin payment services to more than 1,000 U.S. community banks and credit unions.
Citi is also part of a group of 21 major global financial institutions planning a dollar-denominated stablecoin venture for the first half of 2027.
Other banks are moving in the same direction, with U.S. Bancorp also announcing plans to launch its own dollar-pegged stablecoin.
The expanded Coinbase and Citi partnership adds another bridge between traditional banking and blockchain-based payments as stablecoin infrastructure becomes more closely integrated with mainstream financial services.
