Citi, a global financial institution, and Coinbase Institutional exchange are expanding their collaboration. The aim behind the expansion is to develop stablecoin infrastructure. This move will connect traditional banking services with digital asset payments. Both entities have officially shared this news via their X accounts.

We’re building the stablecoin infrastructure stack together with @Citi.

Coinbase Virtual Accounts powered by Citi. Stablecoin acceptance through Spring by Citi.

Bank-grade fiat-to-stablecoin infrastructure on one side, digital asset payment rails on the other. https://t.co/b66hZqW2tP

— Coinbase Institutional 🛡️ (@CoinbaseInsto) September 28, 2026

Coinbase Institutional, in its September 28 announcement, said that the two companies are building a stablecoin infrastructure stack. This stack will combine Citi’s banking capabilities with Coinbase’s digital asset payment infrastructure.

Citi Virtual Accounts Bring Banking Functions

The collaboration includes two key initiatives. Coinbase has selected Citi’s Virtual Account Wallet, part of the bank’s Banking-as-a-Service offering, to power Coinbase Virtual Accounts. The accounts are designed to provide bank-account-like functionality. In other words, this will allow users to accept, hold, and make payments conveniently. Incoming fiat will be automatically converted into stablecoins using Citi’s regulated banking infrastructure.

The second component focuses on stablecoin payments for Citi’s institutional clients. Coinbase’s payments infrastructure will enable merchants using Spring by Citi to accept stablecoin payments at checkout.

Spring by Citi is Citi’s merchant acquiring, gateway, and settlement platform. Under the arrangement, merchants will not need to directly hold or manage stablecoins. Coinbase will convert the received stablecoins into fiat, while Citi will settle the funds as the bank of record.

Coinbase and Citi Target US Launch

The initiative is expected to launch initially in the United States only. However, additional capabilities are expected in the coming months.

The partnership comes as major financial institutions continue developing services around digital assets and stablecoins. Coinbase said Citi’s corporate and institutional clients will gain access to stablecoin payments from a global user base. Coinbase customers can access regulated fiat infrastructure through Citi.