Citi & Coinbase Set Their Sights on Stablecoins — Traditional Finance Meets Web3

In a major signal that banks and crypto firms are drawing closer, Citigroup and Coinbase are gearing up for deeper collaboration around stablecoins and tokenized payments. This isn’t just talk: the moves hint at a shift in how money moves in a digital world.

Oct 28, 2025 - 10:56

Citigroup recently confirmed it is actively exploring the issuance of its own stablecoin and expanding custody services for assets backing digital tokens.
On the crypto front, Coinbase is also ramping up its infrastructure—bringing stablecoin payments and integration possibilities to its platform and institutional clients.
Together, these developments suggest a blending of traditional banking rails with blockchain-native assets: stablecoins are born in crypto but increasingly adopted in banking.

Payment Efficiency: Stablecoins on blockchain rails can make cross-border payments and settlements much faster and cheaper than standard means.
Backed by Real Assets: Regulators now expect stablecoins to be backed by safe assets (cash, Treasuries). With banks like Citigroup involved, legitimacy rises.
Institutional Access: As heavyweight institutions step in, this opens doors for corporate treasuries, large asset managers and global firms to use digital tokens—not just retail crypto users.
Web3 Adoption Bridge: For crypto to go mainstream, it must meet banking standards. This alliance may help pull blockchain into everyday financial systems.

Will Citigroup actually launch a stablecoin? The timing and regulatory approval will matter.
How deeply will Coinbase integrate stablecoin payments for business customers?
Can stablecoin risk be kept low—audited reserves, transparency, regulatory compliance—especially with banks involved?
What role will tokenized deposits play—bank tokens that may rival stablecoins in scale? Some forecasts suggest this could be the next evolution.