Stablecoins Power Citigroup-Coinbase Push for 24/7 Global Payments

Citigroup Inc. and Coinbase Global Inc. have entered a strategic partnership to develop digital asset payment capabilities, marking a significant step in the integration of blockchain technology into traditional finance. The collaboration, announced in late October 2025, focuses on leveraging stablecoins—digital assets pegged to fiat currencies—for institutional clients, aiming to streamline cross-border transactions and enhance payment efficiency, according to a Cryptobriefing report. The initiative aligns with a broader industry trend of financial institutions exploring blockchain-based solutions to address longstanding challenges in speed, cost, and accessibility, a Bloomberg report noted.

The partnership will initially prioritize simplifying the conversion of fiat currencies to cryptocurrencies and vice versa, including cross-border scenarios, as detailed in a Lookonchain report. This includes optimizing on-ramps and off-ramps to bridge traditional and digital asset systems, a critical need for institutions seeking faster settlement times. Debopama Sen, Head of Payments Services at Citigroup, emphasized the collaboration's potential to "enable programmability and conditional payments," highlighting the demand for real-time, 24/7 payment solutions. Coinbase's Brian Foster noted in a StreetInsider article that Citi's global network and expertise in payments make them an "ideal partner" to advance digital asset capabilities.

Stablecoins, which have seen a 70% surge in payment volume since February 2025, are central to the partnership, according to a Coinotag report. According to Artemis data, stablecoin transactions now facilitate $136 billion in annual settlements, with USDT and USDC dominating the market. B2B payments account for $76 billion of this volume, underscoring their role in large-scale, permissionless settlements. Citigroup's existing digital payment solutions, such as Citi Token Services and 24/7 USD Clearing, will be integrated with Coinbase's infrastructure to create a seamless hybrid system, as reported by StreetInsider.

The collaboration also reflects growing institutional confidence in stablecoins as a tool for global commerce. Ronit Ghose of Citigroup's Future of Finance team has projected that the stablecoin market could exceed $1 trillion within five years. Meanwhile, venture capital firm Andreessen Horowitz noted in an a16z analysis that stablecoins processed $46 trillion in transaction volume in 2025—nearly three times Visa's—highlighting their emergence as a "global macroeconomic force."

Regulatory considerations remain a key factor. While U.S. clarity has improved, challenges persist in ensuring compliance with anti-money laundering (AML) and know-your-customer (KYC) requirements across jurisdictions, as discussed in an American Banker article. Citigroup and Coinbase plan to share details on specific initiatives in the coming months, including potential alternative payout methods using on-chain stablecoins.

The partnership builds on Citigroup's blockchain platform, which already enables tokenized deposits for 24/7 transfers, and Coinbase's network of 250+ financial institution partners. As stablecoins continue to reshape the payments landscape, the collaboration positions both firms to capitalize on a rapidly evolving market, with analysts forecasting a tenfold growth in stablecoin volumes to $3 trillion by 2030, according to the a16z analysis.