Citigroup has partnered with Coinbase to enable corporate clients to accept stablecoin payments at checkout. Under this arrangement, Coinbase processes the digital tokens and converts them into US dollars, which Citi then settles as a standard bank transfer. Merchants using this service do not hold or manage any cryptocurrency assets directly.
The partnership also facilitates a reverse process where Coinbase payment clients can convert incoming cash into stablecoins through a Citi-provided account product. These tokens held at Coinbase generate an annual reward of 3.75%. This development follows the recent failure of the Clarity Act in the US Senate on September 15, which fell short of the required 60 votes with a 49-50 result.
The failed legislation faced opposition from banking groups, including the Financial Services Forum chaired by Citi CEO Jane Fraser, which lobbied to ban interest-paying stablecoin rewards due to concerns over potential deposit outflows. Despite this, Citi maintains that its current operations remain compliant with existing banking licenses and regulations.
Citi has not disclosed a specific launch date for the service or identified any merchants currently utilizing the checkout feature. Additionally, the bank is expanding its private blockchain infrastructure for corporate cash transfers to Japan and the United Arab Emirates as part of a broader institutional adoption strategy.
