By Staff Writer
Wall Street giant Citi and crypto exchange Coinbase have teamed up to develop digital asset payment services for the bank’s institutional clients, aiming to bridge traditional and crypto finance, the firms announced this week.
The initial focus will be on simplifying how money moves between traditional fiat currency and crypto. In time, the companies plan to introduce new tools through their partnership that can instantly settle payments 24/7.
Many institutions exist that trade crypto around the clock. The problem is that the systems that these institutions use (also known as on and off ramps) to move their funds in and out, don’t actually operate 24/7. This is the core reason behind why this partnership exists. The focus of Citi and Coinbase teaming up will be on improving fiat deposits and withdrawals on Coinbase.
In the months ahead, both Citi and Coinbase plan to reveal more about their plans, to convert regular fiat money into stablecoins. But until then, Citi has branded this partnership as an extension of its network strategy.
Debopama Sen, Payments and Services Lead at Citi said, “With more than 300 payment clearing networks across 94 markets globally, we see collaborating with Coinbase as a natural extension of our ‘network of networks’ approach.”
Sen went on to discuss how Citi’s clients are looking out for payment solutions that can run 24/7 and feel instantaneous and borderless.
Coinbase on the other hand said that this partnership will be a springboard for the next wave of fintechs to jump off of. Brian Foster, Global Head of Crypto as a Service at Coinbase said, “Citi’s global network and expertise in payments make them an ideal partner as we work to advance digital asset capabilities.”
