Citigroup has brought in Coinbase to develop infrastructure that will allow the bank’s large corporate clients to accept stablecoin payments, The Wall Street Journal reported. The companies announced a partnership in 2025, when they said they planned to simplify stablecoin use for Citi clients.

Citi’s institutional clients, including multinational corporations, will be able to accept stablecoin payments from buyers through the bank’s merchant services, according to the statement.

Coinbase will provide the payment infrastructure and underlying blockchain technology. It will automatically convert digital assets into government-issued fiat currency, while Citi will carry out final settlement.

Shahmir Khalik, Citi’s head of services, said the partnership was intended to connect digital assets with sectors of the economy that continue to use government currencies.

“This is a really important piece to complete this puzzle,” Khalik said.

Separately, Coinbase payment-services clients will be able to use Citi’s banking infrastructure to accept, hold and pay out funds. Incoming cash will be automatically converted into stablecoins pegged to the U.S. dollar.

The stablecoins will be held with Coinbase and will generate yield at the current annual rate of 3.75%.

Citi expands blockchain services

Citi is also expanding its token services, which use the bank’s blockchain to conduct round-the-clock cross-border transfers between corporate accounts, the Journal reported.

The service is now available in Japan and the United Arab Emirates. The program operates in seven jurisdictions overall, including the United States.

The statement said the Citi-Coinbase deal followed the failure of the CLARITY Act bill to advance in the U.S. Senate.

“That doesn’t stop us,” Khalik said.

He said Citi would continue developing digital assets within the scope of its banking license and existing regulations.

Brett Tejpaul, head of Coinbase Institutional, said the partnership should allow consumers and businesses to switch between dollars and stablecoins without leaving the traditional banking system.

Tejpaul said the partnership should also help unlock stablecoins’ potential for cross-border payments, which can be “faster, cheaper, and higher quality.”

Coinbase announced its partnership with Citi in 2025. At the time, the companies said they planned to make stablecoins easier for the bank’s clients to use.

Source: Incrypted