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Citigroup may soon become the first major Wall Street bank to offer stablecoin payment services. This represents a significant stride toward traditional finance adopting blockchain-based digital currencies. This development followed the passage of the GENIUS Act, which provided regulatory clarity in the US for stablecoins.
Bloomberg reported that Citigroup partnered with Coinbase to explore its digital asset capabilities. This partnership was formed to streamline fund transfers between fiat and crypto, creating a smoother bridge between traditional banking and the blockchain ecosystem.
Citigroup’s head of payments, Debopama Sen, said that clients increasingly demand faster, programmable, and more efficient cross-border transactions. The bank is now exploring ways to enable on-chain stablecoin payments for its clients.
Sen noted that stablecoins could form the foundation of the next generation of digital payment systems. She explained that programmable money can enhance transaction flexibility and improve settlement efficiency for global trade.
“Stablecoins will be another enabler in the digital payment ecosystem,” Sen said, adding that they can increase functionality and access for clients across regions.
Coinbase’s Global Head of Crypto as a Service, Brian Foster, said Citi’s reach and experience make it an ideal partner for expanding blockchain-based payment solutions. He noted that combining Coinbase’s digital asset leadership with Citi’s global network could simplify access to digital payments for institutional clients.
The collaboration builds upon Citi’s ongoing digital transformation initiatives, including Citi® Token Services and 24/7 USD Clearing. Both services already enable real-time, round-the-clock transactions for institutional clients worldwide.
Citi operates across 50 major e-commerce markets and provides a wide range of payment solutions. The institution serves 90% of the leading eCommerce companies and supports 15 of the top 20 global FinTechs.
Overall, this latest partnership with Coinbase contributes to Citi's ascendency as a leading firm in next-generation financial infrastructure. It accelerates the rapid evolution of traditional banks as they transition to blockchain-based services for a live, always-on economy.
The GENIUS Act, passed earlier this year, has prompted significant banks to establish a framework for stablecoins in advance of its implementation in 2027. The legislation will standardize legal and operational definitions and standards for tokens pegged to the US dollar in the US market.
Citigroup’s move joins similar efforts by JPMorgan and Bank of America, both of which are exploring stablecoin-based settlement systems. Even JPMorgan CEO Jamie Dimon, known for his skepticism toward crypto, recently confirmed plans to participate in stablecoin development.
Investor confidence in the sector remains high. Circle, the issuer of USDC, went public earlier this year in a landmark IPO, with shares soaring 167% on debut. Citigroup's current market cap of almost $35 billion confirms its prominent position within the digital dollar sector. As Citigroup continues forward, one question remains: will stablecoins underpin the global payments system of tomorrow?
Citigroup's partnership with Coinbase marks a new chapter in the adoption of stablecoin payments enabled by blockchain technology. The GENIUS Act allows banks to integrate digital dollars into global finance by providing a framework for converting dollars into stablecoins and incorporating a new financial system characterized by faster, programmable, and borderless payments.
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