Citi and Coinbase connect fiat payments and stablecoins
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Coinbase and Citi are expanding their payments partnership with new infrastructure designed to enable businesses to move from traditional bank money to stablecoins without having to build separate systems for each. Coinbase will use Citi's Virtual Account Wallet to power Coinbase virtual accounts, offering business clients functionality similar to a bank account for receiving, holding, and paying fiat currencies. Incoming fiat funds can then be automatically converted into stablecoins via Coinbase's payment infrastructure. This system also works in reverse. Citi's institutional clients will be able to accept stablecoin payments via Spring by Citi, its merchant acquiring and payment acceptance platform. Coinbase will provide the digital asset payment rails and convert stablecoins to fiat currency, while Citi will handle settlement as the reference bank. These services will initially launch in the United States, with additional features expected later. The system is designed to allow merchants to offer stablecoin payments without having to hold or manage these digital assets themselves. This expansion builds on a partnership announced in October 2025, when Citi and Coinbase began exploring fiat-crypto gateways, fiat off-ramps, and stablecoin payment infrastructure for institutional clients. This agreement strengthens Coinbase's presence in the infrastructure layer connecting...
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