- Citi’s crypto exploration
- Other banks are joining the fray
Banking giant Citi has collaborated with leading cryptocurrency exchange Coinbase in order to enable digital payments for institutional clients.
The partnership is meant to eliminate the delays that are associated with legacy payment rails.
It will initially focus on simplifying the flow between traditional finance and cryptocurrency payments.
The two companies will also share plans about alternative payout methods in the near future.
Citi’s crypto exploration
Citi started tinkering with blockchain technology when it was still relatively nascent.
The bank then introduced a token service for institutional clients back in 2023.
Earlier this month, the banking giant predicted that stablecoins would be able to power the industry’s next growth phase.
It was also recently reported that Citi is on track to offer crypto custody services next year, potentially creating more competition for some crypto-native firms. This comes after the Office of the Comptroller of the Currency (OCC) issued a clarification that allows banking institutions to custody crypto assets.
Other banks are joining the fray
Citi is not the only major bank that is betting big on crypto. As reported by U.Today, JPMorgan, whose CEO Jamie Dimon has been extremely hostile toward Bitcoin, is on the verge of allowing institutional clients to use Bitcoin and Ethereum as collateral, which has been touted as a huge win for the industry.
Earlier this month, Reuters also reported that major banks, including Goldman Sachs and UBS, are considering joining forces to jointly issue stablecoins backed by G7 fiat currencies.