Citi Expands Partnership with Coinbase: Bank’s Corporate Clients Receive Payments in USDC
Financial giant Citi has officially announced an expanded strategic partnership with the institutional arm of cryptocurrency exchange Coinbase. As part of the new phase of the partnership, corporate clients of Citi Treasury and Trade Solutions (TTS) have direct access to cross-borderCiti Coinbase stablecoin USDCpayments. Integration with the Coinbase Prime infrastructure allows multinational corporations to convert fiat funds into digital dollars around the clock and conduct instant settlements with counterparties around the world.
How does the new payment infrastructure of Citi and Coinbase work?
The new service is integrated directly into the flagship banking ecosystem of CitiDirect. This gives treasurers of large multinational companies the ability to manage liquidity in USDC without having to deploy their own blockchain infrastructure or deal with private keys directly. All custodial and instant conversion operations are handled by the institutional platform Coinbase Prime, which acts as a liquidity bridge.
Key advantages of the solution for the corporate sector:
- 24-hour settlements (24/7/365): Elimination of operational delays associated with bank holidays and time zones.
- Cost optimization: Direct cross-border transfers are significantly cheaper compared to standard SWIFT correspondent bank chains.
- Automated Compliance: Built-in real-time KYC/AML verification of transactions in compliance with Citi banking standards.
What preceded the integration and how does the market react?
Pilot tests of the payment infrastructure began in the second half of 2025, when the bank tested internal payments with a limited group of clients from the international logistics and e-commerce sectors. The full launch of the service became possible thanks to the final formation of a transparent regulatory framework for stablecoins in key jurisdictions.
The market reacted moderately to the release, with Coinbase (COIN) shares up 4.2% in premarket trading and daily USDC institutional transaction volume up more than 12%. Below is a comparison of the traditional and new payment systems:
| Parameter | Traditional SWIFT transfer | Citi-Coinbase (USDC) Service |
|---|---|---|
| Execution speed | From 1 to 3 business days | Less than 60 seconds |
| Service availability | Only during bank business hours | Continuous (24/7) |
| Status transparency | Limited (through intermediaries) | Full (on-chain verification) |
What are the long-term consequences for the banking sector?
Citi’s move marks the final transition of traditional Wall Street institutions from experimenting with private blockchains to directly using public chains and regulated stablecoins. The use of Circle’s USDC stablecoin in the infrastructure of one of the world’s largest transaction banks sets a precedent for the entire sector. According to CryptoInside analysts, by the end of the year other representatives of the institutional mainstream may present similar solutions for corporate settlements.
