US bank Citi is taking a major step towards digital payments by partnering with Coinbase to pilot stablecoin transactions. This partnership marks a turning point in Wall Street's adoption of blockchain currency, following the passage of the US GENIUS Act earlier this year. With the stablecoin market potentially reaching $4 trillion by 2030, this initiative positions Citi at the forefront of institutional adoption.
In brief
- Citi partners with Coinbase to enable on-chain stablecoin payments, connecting traditional banking with the blockchain ecosystem.
- The GENIUS Act accelerates the regulated adoption of stablecoins and digital settlements on Wall Street.
- Citi predicts the stablecoin market will grow from $315 billion to $4 trillion by 2030, transforming global payments.
- Coinbase already provides over 250 banks with crypto infrastructure for custody, payments and institutional trading.
Citi banks on stablecoins as key to the future of global payments
Citi aims to become one of the first major banks to offer stablecoin payments, a move that could accelerate the integration of tokenized dollars into traditional finance. According to Bloomberg, this collaboration with Coinbase aims to simplify the transfer of funds between classic fiat systems and blockchain networks for institutional clients.
Debopama Sen, global head of payments at Citi, explained that corporate clients are demanding faster, programmable and efficient settlement solutions. She emphasizes that these customers are above all looking for flexibility: 24-hour payments, conditional transactions and automated processes that current systems do not yet fully enable.
Sen added that Citi is actively developing solutions for allow its customers to make on-chain stablecoin payments. She explained that these digital assets are set to become a pillar of digital payments, helping to expand the ecosystem and improve the flexibility offered to businesses using the bank's services.
Citi is exploring solutions to enable on-chain stablecoin payments for our clients in the near future. Stablecoins will be an additional engine in the digital payments ecosystem, contributing to its development and strengthening the functionalities available to our customers.
Debopama Sen
Citi's shift toward stablecoins is part of a broader strategy focused on digital assets. Last month, the bank revised upwards its forecast for the tokenized dollar market, anticipating dramatic growth from $315 billion currently to $4 trillion by 2030.
Wall Street joins Citi in the stablecoin race
An overall movement has begun on Wall Street since the adoption of the GENIUS Act, which introduces a federal regulatory framework for stablecoins from 2027. In response, major American banks are increasing initiatives to develop their own solutions.
Citigroup thus joins JPMorgan and Bank of America, both already engaged in projects linked to stablecoins. Even JPMorgan CEO Jamie Dimon, once an outspoken critic of crypto, recently confirmed the bank's participation in several initiatives in this area.
Investor confidence is also strengthening. Circle, issuer of the stablecoin USDC, went public earlier this year with a notable launch: its shares jumped 167% on its first day. The company now boasts a valuation of around $35 billion, a symbol of the growing credibility of regulated dollar-backed digital assets.
Coinbase's Growing Role in Banking Infrastructure
Coinbase, Citi's chosen partner, already supports more than 250 banks and financial institutions around the world. Brian Foster, global head of the platform's crypto-as-a-service, points out that the company has spent several years perfecting its infrastructure to meet the demands of the institutional sector. Banks, brokers and fintechs are now seeking access to Coinbase's technology stack for services ranging from custody and staking to payments, spot trading and derivatives.
Growing adoption by institutions is driven by three major trends: increased demand for stablecoin payments, growing interest in tokenized assets, and the launch of crypto exchange-traded funds (ETFs). Since the GENIUS Act was signed into law in July, stablecoin trading volumes have increased significantly.
According to blockchain analytics company Artemis, more than 10 billion dollars passed through stablecoins in August for payments and transfers, compared to 6 billion in February, more than double the levels recorded in August 2024.
At current rates, annual stablecoin payments could exceed $120 billion. Andrew Van Aken, data scientist at Artemis, says more businesses are abandoning slow and costly international transfers in favor of blockchain-based payments that settle in just minutes.
The main reasons why businesses are adopting stablecoin payments include:
- Significantly reduced cross-border settlement times, from days to minutes.
- Lower transaction costs than traditional transfer systems or the SWIFT network.
- Increased transparency and auditability with on-chain verification.
- Seamless integration with programmable finance and smart contracts.
- Better liquidity management, with permanent access to funds, 24/7.
Van Aken points out that stablecoins are becoming increasingly attractive to businesses because they offer both yield potential and faster capital circulation. According to him, these strengths build confidence in digital dollars and drive their continued growth in global markets.
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