Citigroup pushes for stablecoin payment service… partners with Coinbase

JH Kim

Summary

Citigroup said it has entered a strategic partnership with Coinbase for a stablecoin payment service.
It said the collaboration aims to enhance real-time payments and liquidity management systems for global corporate clients.
Citigroup said it plans to commercialize a regulatory-friendly stablecoin payment service leveraging Coinbase's infrastructure.

Citigroup(Citigroup) has partnered with Coinbase, the largest U.S. virtual asset (cryptocurrency) exchange, to provide stablecoin payment services. The move is drawing attention as a case of a traditional financial institution entering digital asset payment infrastructure.

On the 27th (local time), according to economic news channel Walter Bloomberg(Walter Bloomberg), Citigroup has entered a strategic partnership with Coinbase to build a stablecoin-based payment solution. The collaboration aims to enhance real-time payment and liquidity management systems for global corporate clients.

Citigroup has been exploring blockchain payment technology as an alternative to address processing speed and cost issues in existing international remittance networks. As part of that effort, the partnership plans to commercialize a regulatory-friendly stablecoin payment service using Coinbase's infrastructure.

The financial industry expects Citigroup to accelerate the digital payment transition for global corporate clients. Observers note that the scope of the partnership could also include the potential integration with central bank digital currencies(CBDC) in the future.