Global banking powerhouse Citi has teamed up with Coinbase to simplify digital asset payments for institutional clients, marking another step in bridging traditional finance and crypto.
The collaboration aims to eliminate the inefficiencies of legacy payment systems by enabling faster, blockchain-powered transactions. Initially, the focus will be on improving the flow between fiat and crypto settlements, with both firms planning to explore alternative payout methods in the near future.
Citi has been exploring blockchain since its early days, launching a token service for institutional clients in 2023. The bank recently highlighted stablecoins as a key driver of the next growth phase in the digital asset sector and is reportedly preparing to launch crypto custody services next year following regulatory clarity from the U.S. Office of the Comptroller of the Currency (OCC).
Citi’s move comes amid growing institutional interest in crypto. JPMorgan, despite CEO Jamie Dimon’s skepticism toward Bitcoin, is close to allowing clients to use BTC and ETH as loan collateral. Meanwhile, Goldman Sachs and UBS are said to be exploring a joint effort to issue G7-backed stablecoins, signaling a broader shift as major banks embrace digital assets.
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