Citi and Coinbase Collaborate to Enhance Institutional Payment Systems

Citi and Coinbase have joined forces to streamline the use of digital assets for payments within financial institutions. The primary objective will be to enhance the transfer of funds between traditional fiat currencies and cryptocurrencies. Eventually, the collaboration aims to roll out innovative tools for instant payment settlements around the clock.

Many institutions engage in crypto asset trading continuously. However, the systems utilized by these institutions (known as on and off ramps) for transferring funds do not function 24/7.

This is where the fundamental purpose of this partnership lies. With this strategic alliance, announced on 27 October 2025, the emphasis will be on enhancing fiat deposits and withdrawals with Coinbase.

We’re working with @Citi to shape the future of payments.

→ Seeking to simplify access for Citi clients to digital assets
→ Unlocking the potential of stablecoins for transactions
→ Enhancing on and off-ramps

It’s time to integrate digital assets into the global economy. pic.twitter.com/jGaTZ8wPRf

— Coinbase (@coinbase) October 27, 2025

In the upcoming months, both Citi and Coinbase will unveil their strategies to transform standard fiat currency into stablecoins.

Citi has framed this collaboration as an expansion of its network strategy. Debopama Sen, Payments and Services Lead at Citi, stated, “With more than 300 payment clearing networks across 94 markets worldwide, we perceive our strategic alliance with Coinbase as a natural enhancement of our ‘network of networks’ model.”

Sen further explained that Citi’s clients are seeking payment solutions that operate around the clock, providing an experience that feels instantaneous and without borders.

On the other hand, Coinbase suggests that this collaboration will serve as a launchpad for the next generation of fintechs. Brian Foster, Global Head of Crypto as a Service at Coinbase, remarked, “Citi’s extensive global platform and payment expertise make them an ideal partner as we aim to boost digital asset capabilities.”

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Citi x Coinbase Collaboration Focuses on Stablecoins for Enhanced Payment Efficiency

This collaboration comes at a moment when stablecoins are being sought after in corporate finance. Companies within the sector are requesting smarter payment solutions that deliver speed, lower costs, and adaptability.

Sen mentioned that Citi is currently investigating ways to facilitate stablecoin payments directly on-chain, thereby unlocking new functionalities for clients.

For crypto asset users, the persistent issue has been that trading occurs instantly, while transferring money in and out of accounts can be burdensome due to slowness and high costs.

Breaking: Citi Introduces Stablecoin Payouts For Corporate Clients Through Coinbase Strategic alliance

Corporate treasuries can now utilize distributed record rails to transfer funds using their existing Citi relationship.

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Citi announced they’re integrating Coinbase to provide institutional clients… pic.twitter.com/RKAOXpYGYm

— Simon Taylor (@sytaylor) October 27, 2025

Traditional systems like ACH (Automated Clearing House) and wire transfers require excessive time. A connection between traditional fiat currency and the digital dollar can help resolve this and facilitate smoother money transfers. Citi is already collaborating with numerous e-commerce and fintech companies, providing a strong foundation to implement new payment solutions.

In a similar context, for Coinbase, partnering with Citi streamlines the conversion of users’ crypto interests into real-world payments. By optimizing how money transitions from off-ramps, it becomes simpler for crypto-centric businesses such as Coinbase to manage transactions while remaining compliant.

Additionally, the integration of stablecoin payouts could allow for near-instant payment settlements and offer a more efficient tracking system compared to Traditional Finance (TradFi).

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Citi Plans To Launch Crypto Custody Services By 2026

Citi is expanding deeper into the crypto realm. The banking powerhouse declared earlier this month its intention to begin providing crypto custody services to assist financial institutions in securely storing their digital assets.

This indicates that Wall Street is increasingly acknowledging crypto’s significance. Citi’s custody service will initially center on BTC and Ethereum, with plans to incorporate additional tokenized assets over time. Meanwhile, Citi is coordinating with regulators to ensure crypto law and scalability.

BREAKING: $2.3 Trillion Citibank will launch crypto custody services in 2026. pic.twitter.com/DLF4JpEA8g

— Ash Crypto (@Ashcryptoreal) October 13, 2025

Citi’s entry into crypto is merely a fragment of the broader narrative of Wall Street’s crypto adoption. Financial giants like BlackRock, Fidelity, and BNY Mellon are already well-positioned, with their own crypto products and services established.

Nevertheless, Citi has recently launched its Citi Crypto token Services and 24/7 USD clearing. Furthermore, its initiative for crypto custody represents a strategic move that could position Citi as a formidable player in both the crypto and TradFi spaces.

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