Citigroup has partnered with Coinbase Global to enable its institutional clients to accept stablecoin payments through Citi’s merchant-processing services. The collaboration allows large multinational corporations to receive stablecoin payments at checkout, with Coinbase providing the underlying blockchain technology and payment rails. Incoming funds are automatically converted into government-issued currency, and Citi acts as the bank of record.

Stablecoins will be held at Coinbase and earn an interest-like reward of 3.75% annually. Shahmir Khaliq, head of services at Citi, stated the partnership aims to integrate digital assets into the broader economy. Separately, Citi is expanding its token services to Japan and the United Arab Emirates, now operating in seven jurisdictions including the U.S. The bank is also part of a group planning a tokenized deposit system and a stablecoin initiative.

The partnership follows the failure of the Clarity Act in the Senate, which would have accelerated digital asset adoption. Brett Tejpaul of Coinbase Institutional emphasized the goal of enabling seamless transitions between dollars and stablecoins within the traditional banking system.