Citigroup Expands Coinbase Partnership for Stablecoin Payments

Banking giant Citigroup is expanding its partnership with cryptocurrency exchange Coinbase as it moves deeper into stablecoin payments and blockchain-based financial services.

According to a Wall Street Journal report, Citi plans to use Coinbase’s infrastructure to accept stablecoin payments from customers, strengthening the connection between traditional banking and digital assets. Details remain limited, with neither Citi nor the report specifying which stablecoins or blockchain networks will be supported.

The expanded relationship builds on a digital-asset payments collaboration announced by Citigroup and Coinbase in October 2025. That initiative initially focused on infrastructure allowing institutional customers to move between traditional currencies and digital assets. The companies also planned to explore additional methods for converting fiat currencies into stablecoins.

Citi’s latest Coinbase expansion forms part of the bank’s broader cryptocurrency strategy. The financial institution has identified four major priorities for its digital-asset business: expanding Citi Token Services, improving interoperability between financial networks, developing cryptocurrency custody and tokenization services, and providing banking infrastructure for virtual-asset service providers.

The bank aims to position itself as a bridge connecting fiat currencies, stablecoins and other tokenized assets.

Citi has also accelerated its push into crypto custody. In August, the bank introduced its Custody+ platform and said it intends to launch custody services for native digital assets before the end of 2026, beginning with Bitcoin. The offering is expected to complement Citi’s existing traditional custody services.

Tokenized securities are another area of expansion. In June, Citi launched Digital Depositary Receipts representing shares in private companies. The digital securities operate through regulated blockchain infrastructure provided by SIX, with Citigroup serving as both issuer and custodian.

Citi has additionally become the first U.S. bank to process live native transactions using Swift’s blockchain-based ledger.

The deeper Coinbase partnership highlights how major financial institutions are increasingly integrating stablecoins, crypto custody and tokenized assets into existing banking infrastructure as blockchain technology gains wider institutional adoption.