Coinbase partners with Citibank to create a borderless stablecoin payment network: an upgrade of the financial system is imperative.

The US cryptocurrency exchange Coinbase and financial giant Citibank (Citi) announced a partnership to jointly explore new options for digital payments, including “fiat to on-chain stablecoin payments,” which will initially be tested with Citibank's institutional clients. This move symbolizes a critical moment for stablecoins entering the global payment system and echoes the wave of regulatory clarity brought about by the US GENIUS Act.

From Payment Perspective: Coinbase and Citibank's Cross-Industry Collaboration

According to a report by Bloomberg, both parties will cooperate to advance several digital payment initiatives, focusing on researching how to smoothly convert fiat into on-chain stablecoins for cross-border settlement and payment operations for institutional clients. Initially, it will target Citibank's institutional clients, allowing large enterprises to conduct cross-border transactions more safely and efficiently.

Coinbase provides infrastructure with its compliance and technical strength, while Citibank leverages its vast payment clearing network across 94 global markets and over 300 routes, giving this cross-industry collaboration global momentum. Specific results and application directions are expected to be announced in the coming months.

Citibank is actively exploring the stablecoin market to meet customer demand.

Debopama Sen, head of Citigroup's Payments and Services division, stated that the financial environment is rapidly changing, and the collaboration with Coinbase is a natural extension of its “network of networks (” concept, which will help Citigroup's clients achieve a borderless payment experience:

Our clients are increasingly seeking programmable, conditional payments )conditional payments(, as well as 24/7 real-time cross-border payment services. Stablecoins will become the major drivers in the digital payment ecosystem.

Against the backdrop of the GENIUS Act being passed this summer, the American banking industry is experiencing a wave of stablecoin layout, with market pioneers like Citigroup, JPMorgan, and Bank of America leading the way.

)Citibank is expected to launch Crypto Assets custody services next year, with executives revealing that they do not rule out partnering with third-party technology providers (.

Coinbase Strategic Upgrade: From Exchange to Payment Infrastructure

In recent years, Coinbase has been actively expanding its business landscape, no longer just a simple Crypto Assets exchange, but shifting towards a new model of “Crypto as a Service )Crypto as a Service(”, becoming a bridge for traditional institutions to connect with the on-chain world.

Coinbase CEO Brian Armstrong and its Global Crypto Services Head Brian Foster both stated that this collaboration will simplify and expand the feasibility of businesses using digital asset payments, promoting mainstream adoption: “Undoubtedly, Crypto Assets and stablecoins are key tools for upgrading the global financial system.”

Last week, Coinbase just announced the acquisition of the fundraising platform Echo and its subsidiary Sonar, combining the previously acquired Deribit and LiquiFi, completing the last piece of its “one-stop industry chain from token issuance to listing and trading.”

)Coinbase acquired the private placement platform Echo for $375 million, paving the way for ICOs to go directly to the exchange pipeline(

The key moment for stablecoins to enter the mainstream financial system.

Today, this cooperation is not only a cross-sector alliance between the two companies but also an important step for the application of stablecoins into the enterprise and institutional financial sector. As stablecoins gradually integrate into cross-border payment and settlement scenarios, the boundaries between traditional banks and the crypto world are dissolving at an unprecedented speed.

This article discusses how Coinbase collaborates with Citibank to create a borderless stablecoin payment network: an upgrade of the financial system is imperative. Originally appeared in On-chain News ABMedia.