Citigroup Partners With Coinbase to Enable Stablecoin Payments for Corporate Clients

Citigroup is launching a service allowing corporate clients to accept stablecoin payments without directly handling crypto assets. Through a partnership with Coinbase, stablecoin payments are converted into fiat currency and settled as standard bank transfers. Conversely, Coinbase clients can utilize a Citi-backed product to convert cash into stablecoins, which earn a 3.75% annual yield. This development follows the recent failure of the Clarity Act in the U.S. Senate, where banking groups—including the Financial Services Forum chaired by Citi CEO Jane Fraser—lobbied against interest-bearing stablecoins, citing concerns over potential deposit outflows.