Citi And Coinbase Connect Fiat With Stablecoin Payments
Citi and Coinbase are connecting bank accounts, stablecoin conversion and merchant payments through integrated infrastructure.
Coinbase and Citi expanded their collaboration on September 28, 2026 to make it easier for businesses to connect traditional banking with stablecoin payments. The initiative addresses a practical challenge for companies that currently need separate banking and digital asset infrastructure to move between fiat and stablecoins. It builds on the companies’ October 2025 collaboration, which initially focused on improving fiat payments and Coinbase’s connection between traditional money and digital assets.
The expanded collaboration introduces two distinct capabilities. Citi will provide the regulated banking infrastructure behind Coinbase Virtual Accounts, while Coinbase will provide the stablecoin payment infrastructure used by Citi’s institutional merchant clients.
Coinbase Virtual Accounts, powered by Citi
Coinbase selected Citi’s Virtual Account Wallet, part of Citi’s banking as a service capabilities, to power Coinbase Virtual Accounts. Businesses using Coinbase Payments can provide customers with functionality similar to a bank account, allowing them to accept, hold and pay funds. Incoming fiat can then be automatically converted into stablecoins.
Citi provides the regulated banking infrastructure connecting these accounts with the traditional financial system, while Coinbase provides the digital asset and payments layer. This gives businesses a direct route from fiat into stablecoins without requiring a separate conversion workflow.
Stablecoin Payments Through Spring by Citi
The collaboration also brings Coinbase Payments into Spring by Citi, Citi’s platform for merchant payment acceptance, gateway services and settlement. Citi’s institutional clients will be able to accept stablecoins at checkout while continuing to receive settlement in fiat.
Coinbase processes the stablecoin payment and converts the digital currency into fiat, while Citi settles the funds as the bank of record. The merchant therefore does not need to hold, custody or directly manage the digital asset. Citi and Coinbase state that the capability gives merchants access to a global base of more than 150 million stablecoin holders.
What Businesses Can Build
Branded Virtual Accounts: Businesses can provide customers with fiat accounts for receiving, holding and sending funds, supported by Citi’s regulated banking infrastructure.
Automatic Conversion into Stablecoins: Incoming fiat can move directly into stablecoins without requiring a separate manual conversion or treasury process.
Stablecoin Payment Acceptance: Merchants can offer stablecoins as a checkout option while receiving the final settlement in fiat.
How The Model Works
The collaboration separates the banking and digital asset layers between the two providers. Citi manages regulated fiat infrastructure and settlement, while Coinbase provides the stablecoin payments and conversion infrastructure. Businesses can therefore connect the two forms of money through one integrated payment flow rather than independently building both systems.
The initiatives will launch first in the United States, with additional capabilities expected in the coming months. Citi operates in more than 180 countries and jurisdictions, although the companies have not announced which additional markets will receive these services.
🚨 What This Signals for the Financial Sector
The collaboration places stablecoin functionality inside existing banking and merchant payment infrastructure rather than treating it as a separate payment environment. Coinbase customers gain access to Citi’s regulated fiat infrastructure, while Citi’s institutional clients gain a way to accept stablecoin payments through their existing merchant payment setup.
It also demonstrates two practical integration models. Fiat can enter a business account and convert into stablecoins, while stablecoins received from customers can convert back into fiat before reaching the merchant. In both cases, the conversion happens within the underlying infrastructure, reducing the amount of digital asset processing that the business itself needs to manage.
For financial institutions, the model provides a concrete example of how a regulated bank and digital asset infrastructure provider can divide responsibilities while connecting traditional accounts, stablecoins and merchant payments within the same payment flow.
