Coinbase is expanding its collaboration with Citi to provide businesses with integrated fiat and stablecoin payment infrastructure. The partnership will use Citi’s Virtual Account Wallet to power Coinbase Virtual Accounts, giving customers bank-account-like functionality for accepting, holding, and sending funds.
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Incoming fiat can automatically convert into stablecoins. Coinbase will also support stablecoin acceptance through Spring by Citi, with the initiatives launching first in the United States.
Source: Coinbase’s X Post
Coinbase and Citi Expand Stablecoin Payments
Alec Lovett, Head of Infrastructure Product, Coinbase, says that “Fintechs building on Coinbase have always needed a fast, compliant bridge between fiat and stablecoins, and Citi gives us that at scale. By powering our Virtual Accounts with Citi’s regulated banking infrastructure, we’re giving businesses bank-account-like functionality with the speed of stablecoins underneath it, and pairing that with stablecoin acceptance through Spring by Citi means our shared customers can move between fiat and digital assets without ever having to think about which one they’re touching.”
Under the arrangement, incoming fiat can automatically be converted into stablecoins. This allows businesses to move between traditional money and digital assets without establishing separate banking and conversion systems. Citi provides the regulated banking infrastructure, while Coinbase supplies the payments and digital-asset technology.
The companies said the arrangement gives businesses a direct route between traditional finance and digital assets. It also allows customers to build branded virtual accounts without managing the underlying banking infrastructure themselves.
Also Read: Coinbase Opens IPO Access to U.S. Retail Investors in 2026
Stablecoin Payments Reach Citi Institutional Clients
The collaboration also extends Coinbase’s payments infrastructure to Spring by Citi, Citi’s payment acceptance platform for merchant acquiring, gateway technology, and settlement.
Under the collaboration, Citi’s business customers will be able to make stablecoin payments in checkout without actually holding or handling any stablecoins themselves. Coinbase technology converts the digital currencies into fiat on its end, with Citi clearing the transaction.
Using this approach, customers will be able to use stablecoins for payment, whereas merchants get paid in fiat. In other words, companies will be able to take digital asset payments without modifying their settlement systems.
Brett Tejpaul, Head of Coinbase Institutional, said, “Citi is exactly the kind of regulated banking partner the digital asset economy needs to move from experimentation to everyday commerce. This collaboration gives Coinbase customers bank-grade fiat infrastructure on one side and Citi’s institutional clients easy, low-friction stablecoin acceptance on the other, without either side needing to build or manage a system they don’t need.”
Partnership Builds on 2025 Digital Asset Collaboration
The latest development is based on a partnership that was announced between Citi and Coinbase in October 2025. During this time, the two organizations stated that their initial plans were to concentrate on the payment abilities using digital assets for institutional customers.
Additionally, Citi and Coinbase noted their ongoing exploration of further means of linking conventional fiat currency payments with on-chain stablecoin payments. The partnership is framed as an attempt to make connections between the conventional finance world and cryptocurrencies easier.
These new developments bring the partnership closer to concrete payment use cases. They link regulated banking, stablecoin conversion, and payment processing in merchants from both firms’ platforms.
Citi’s Global Payment Network Supports Expansion
Citi is bringing an experienced payment network to this collaboration. As per the bank, its business has been covering over 300 payment clearing networks in 94 countries. Another initiative in the bank’s digital asset strategy is 24/7 USD Clearing & Citi Token Services.
Coinbase offers services that connect both fiat and cryptocurrencies, enabling businesses to leverage payment and stablecoin services from its platform. According to the companies, the new ventures will initially be introduced in the US market, with more features expected within a few months’ time.
Therefore, the launch of the venture will be an early indication of demand by institutions and businesses for such services.
U.S. Launch Sets Stage for Broader Expansion
In the short term, however, the implementation of these new services will be seen in the United States. The use of business, transactions, and institutions will be critical measures as both Coinbase and Citi work together further.
Other possible future developments could be the provision of more payment options and further geographical markets. The partnership is also a demonstration of the growing acceptance of stablecoins in traditional payments systems.
Coinbase and Citi are combining the benefits of regulated banking and digital asset payments using the technologies of Virtual Accounts and Spring by Citi. What comes next depends on deployment and adoption by customers.
Also Read: Coinbase Scam Exposed: How One Man Stole Nearly $16M From Users
