Citigroup and Coinbase have partnered to expand digital asset payment solutions for the bank's corporate clients. This move has rekindled interest in blockchain technology among major Wall Street institutions, despite years of regulators warning of risks.
The partnership aims to enable Citi's institutional clients to more easily and quickly transition from crypto assets to fiat currencies and vice versa. The primary goal is to accelerate fund transfers, particularly in international transactions.
Citigroup's Perspective on Digital Payments
Citi's Head of Payment Services, Debopama Sen, stated that the bank's clients value not only speed but also "cost, speed, and efficiency factors such as programmable and conditional payments." Sen also indicated that they are "exploring solutions to enable on-chain stablecoin payments for clients" in the coming months.
He further added, "Stablecoins will play a significant role in the digital payments ecosystem. They will drive growth in this space and functionality for our customers."
Ronit Ghose, head of Citi’s “Future of Finance” team, predicts the stablecoin market will surpass $1 trillion within five years, a significant increase from its current valuation of around $300 billion.
Recent Developments and Coinbase's Role
This collaboration follows Citi’s recent launch of its own blockchain-based platform, which allows customers to transfer funds 24/7 through tokenized deposits within the bank’s network.
On the Coinbase side, Brian Foster stated that the exchange works with more than 250 banks and financial institutions worldwide. Foster explained, "Coinbase has built a highly specialized infrastructure over the years. Banks, brokerages, and fintech companies are seeking partnerships across a wide range of sectors, from spot and derivatives trading to custody, staking, and payment services."