Citigroup and Coinbase have announced a new collaboration to explore on-chain stablecoin payment solutions, a move that could mark a major step toward mainstream adoption of digital payment rails.
Focus on Institutional Clients and Efficiency
The initiative will focus initially on institutional clients, testing “fiat-to-on-chain stablecoin payout methods” designed to make fund transfers faster and more efficient across global markets.
Citi’s head of payments, Debopama Sen, said the bank’s clients are increasingly demanding programmable and 24/7 payment options, with stablecoins expected to play a major role in that transition.
Industry Leaders Weigh In
Coinbase CEO Brian Armstrong said on X that “crypto and stablecoins are the tools that will update the global financial system,” calling Citi an ideal partner given its extensive international network.
According to the announcement, Citi will leverage Coinbase’s crypto infrastructure to explore settlement and payout mechanisms that integrate seamlessly with the bank’s existing systems.
Market Growth and Regulatory Landscape
This partnership comes months after Citi raised its stablecoin market forecast to $4 trillion by 2030, up from roughly $315 billion today, citing accelerating adoption across payments and DeFi applications.
The collaboration also follows the passage of the U.S. GENIUS Act, which established a regulatory framework for fully collateralized stablecoins and is expected to take effect in 2027.
Circle, the issuer of USDC, went public earlier this year in one of the biggest crypto listings to date, with its stock up 167% on debut and a market cap near $35 billion.
Future Outlook
Both firms said updates on the pilot program will be shared in the coming months, with a shared goal of expanding secure, regulated digital payments globally.