Institutional customers can now use Citi's merchant-processing services to accept stablecoins from their clients under a new partnership with Coinbase. The exchange will provide the necessary blockchain infrastructure and automate the conversion of these digital assets into fiat currency, while the bank will act as the bank of record to settle the funds.

The alliance aims to integrate stablecoin payments directly into traditional banking infrastructure, with a focus on cross-border transactions. In a separate expansion of its digital assets presence, Citi is launching its blockchain-based Token Services in Japan and the UAE, increasing its total reach to seven jurisdictions.