Citi and Coinbase expanded their collaboration with two services connecting traditional bank accounts and stablecoin payments for businesses in the United States. Coinbase selected Citi's Virtual Account Wallet to support Coinbase Virtual Accounts, which convert incoming fiat funds into stablecoins automatically. Citi's institutional clients can also accept stablecoin payments through Spring by Citi while receiving settlement in conventional currency.
The companies first announced a collaboration in October 2025 to develop fiat on- and off-ramp capabilities for Citi's institutional clients. Coinbase supplies the stablecoin payment rails and underlying blockchain technology. Citi provides regulated banking infrastructure and acts as the bank of record for settlement.
TWO PAYMENT FLOWS CONNECT
Coinbase Virtual Accounts give payments customers bank-account-like functions for accepting, holding and paying fiat funds. Incoming fiat is converted into stablecoins automatically. Citi's Virtual Account Wallet provides the banking layer beneath those accounts.
Spring by Citi addresses the other side of the transaction. Its institutional merchant clients can accept stablecoins at checkout without holding or managing the tokens directly, because Coinbase converts the digital payment into fiat before Citi settles the funds. The initiatives are launching first in the United States, with further capabilities expected later.
BANKS EXTEND DIGITAL-ASSET INFRASTRUCTURE
The arrangement adds to Citi's separate blockchain-based Token Services for institutional clients. Citi separately announced on 28 September that it had extended that service to Japan and the United Arab Emirates, taking it to seven markets. Citi's proprietary token service remains distinct from the Coinbase stablecoin flows announced this week.
The immediate change is that merchants can add stablecoin acceptance while retaining fiat settlement and regulated bank infrastructure.