Citibank (C.US) joins forces with Coinbase (COIN.US) to empower institutional clients with digital payment solutions.

Citigroup (C.US) plans to collaborate with the cryptocurrency exchange Coinbase (COIN.US) to create digital asset payment solutions for the bank's institutional clients and expand this service to global customers in the future. In a joint statement released on Monday, the two parties indicated that the initial focus of this partnership will be on providing users with access to traditional currencies (commonly referred to as "fiat currencies" in the cryptocurrency field) through Coinbase's services. This move is significant as it enables smooth conversion between traditional currencies and digital assets like cryptocurrencies. Citigroup also stated that this collaboration will streamline the payment process. Brian, Global Head of "Crypto as a Service" at Coinbase, stated, "By combining Citi's business reach with Coinbase's leading position in the digital asset space, we are creating a solution that can simplify the digital asset payment process and expand its utility." Citigroup mentioned that more specific details about the functionality, including exploring ways to convert traditional currencies into stablecoins, will be announced in the coming months. Stablecoins are digital tokens designed to maintain a stable value, often backed by traditional assets such as the US dollar or government bonds. The popularity of stablecoins has greatly increased. Following the passage of the "Guidance and Encouragement of National Innovation in Stablecoin Ecosystem Act" (GENIUS Act) in the US in July this year, demand for stablecoins in the market is expected to further grow. The pace of trading activities in the digital asset industry has accelerated this year. The Trump administration's favorable attitude towards cryptocurrencies has encouraged companies to expand their businesses in the US, creating a conducive environment for the industry's development and investment. As one of the largest cryptocurrency exchanges globally, Coinbase has invested $375 million to acquire the investment platform Echo. Additionally, earlier this year, the company reached a $2.9 billion agreement to acquire the cryptocurrency options provider Deribit.