Coinbase, Citigroup Team Up To Boost Global Crypto Payments

Coinbase, Citigroup have announced a partnership. Citigroup is the third-largest bank in the US for crypto payments. The publicly listed crypto exchange disclosed this on X.

They noted that the collaboration will explore the use of digital assets for payments. The exchange’s CEO, Brian Armstrong, confirmed the deal. Brian suggested the importance of crypto and stablecoins to the financial ecosystem.

Armstrong said:

Citigroup, Coinbase to Work on Crypto and Stablecoin Usage

Coinbase, Citigroup will help clients use stablecoins and crypto. The goal is to simplify the transmission of value across financial systems. This means using it for payments, treasury management, and all other ways that will enable efficiency.

With this, Coinbase will leverage its blockchain expertise to build payments solutions that will serve Citi’s networks. Part of the planned improvements also includes enhancing systems for converting cryptocurrency to fiat and vice versa.

The exchange emphasized the importance of on-ramps and off-ramps, as well as stablecoins. These tools are crucial for integrating cryptocurrency with traditional financial systems.

It wrote:

Meanwhile, the exchange did not provide full details on the tools it will be building. Instead, the company stated that the partnership is part of its broader efforts to integrate cryptocurrency with the broader economy.

However, it promised to share more information later. Despite the vagueness, investors reacted positively to news of the deal as Coinbase stock saw a slight gain. COIN rose by almost 2% today, although it has since declined in the post-market.

Crypto Stablecoin Payments Could Reach $122 Billion by Year’s End

The partnership coincides with the increasing adoption of stablecoins for payments over the past year. According to data from Artemis Analytics, the value of stablecoin payments could reach $122 billion by the end of 2025.

The value of stablecoin payments has already more than doubled since last year, increasing 137% since August 2024.

The GENIUS Stablecoin Act played a key role in this growth. Crypto stablecoin payments rose 70% in just seven months. It went from $6 billion in February 2025 to $10.2 billion in August 2025.

The Stablecoin Payments report from Artemis, in conjunction with Castle Island VC and Dragonfly, also noted B2B as the driving force. B2B accounts for two-thirds of all stablecoin payments, followed by consumer channels and Peer-to-Peer.

Interestingly, the US is the largest market for stablecoin payments, with 18.7%. This suggests an incentive for a partnership between Coinbase and Citibank. Singapore has  18.4% while Hong Kong, Japan, and the UK complete the top 5.

Stablecoins are gaining traction for payments. Yet, they make up just 0.9% of Visa’s $13.2 Trillion volume. This gap reveals a massive growth opportunity.

Traditional banks, fintech companies, and cryptocurrency firms are racing to capture it. Each group wants a bigger slice of the future payment market.