Citi has reached a partnership with Coinbase that will let Citi’s institutional clients, including large multinational companies, accept stablecoin payments through Citi’s merchant acquiring service, according to The Wall Street Journal. Under the arrangement, Coinbase will provide the stablecoin payment rails and the underlying blockchain infrastructure, while also converting incoming stablecoins into fiat automatically. Citi will act as the ledgering bank and complete fund settlement. The cooperation also extends to Coinbase’s own payments clients. By using Citi’s banking capabilities, those customers will be able to receive, hold, and make payments through tools designed to function like bank accounts. Cash received through that setup will be automatically converted into stablecoins and stored with Coinbase. The report added that the balances currently qualify for a 3.75% interest-like annualized reward.
Citi has partnered with Coinbase on a stablecoin payments and settlement offering for institutional clients, including large multinational corporations, according to The Wall Street Journal.
Under the deal, Citi’s institutional clients will be able to accept customer stablecoin payments through Citi’s merchant acquiring service. Coinbase will provide the payment rails and the underlying blockchain technology, and it will automatically convert stablecoins into fiat. Citi will serve as the ledgering bank and handle settlement.
The arrangement also covers Coinbase payments clients. Using Citi’s banking capabilities, those customers will be able to receive, hold, and send funds through tools that function similarly to bank accounts. Cash received will be automatically converted into stablecoins and stored with Coinbase, where it currently earns a 3.75% annualized interest-like reward.
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