Today Citi announced a collaboration with Coinbase and will provide banking services for Coinbase clients via its virtual account wallet service. It will also add support for stablecoin payments via Spring, Citi’s payment acceptance solution.
While one of Coinbase’s subsidiaries has conditional approval for a national trust charter, it does not have a Federal Reserve account and cannot provide deposit services. The Citi Virtual Account Wallet will provide each customer with their own bank routing details, with the goal of automatically converting incoming fiat to stablecoins.
It’s very common for fintechs to partner with sponsor banks for these sorts of arrangements, but those partnerships are often with specialty banks, rather than a systemically important bank like Citi.
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