Citi & Coinbase: A Turning Point for Digital Payments in Treasury

From Treasury Masterminds

When Citi announced on 28 October 2025 that it would partner with Coinbase to offer “digital-asset payment solutions” to institutional clients, it signalled something bigger than a single bank-exchange collaboration. It marked another step in the gradual convergence between traditional finance and the digital-asset world — and a moment treasury professionals can’t afford to ignore.

According to Reuters, the partnership will initially allow Citi’s U.S. institutional clients to move fiat funds through Coinbase’s infrastructure and explore conversion into stablecoins — digital tokens such as USDC or EURC, designed to maintain a stable value and backed by traditional assets. Citi has also hinted that the service could expand globally.

For corporate treasurers, this development is less about crypto speculation and more about infrastructure modernisation. It opens the door to faster cross-border payments, new liquidity options, and more efficient settlement processes that might one day rival today’s SWIFT-based networks.

Lorena Pérez Sandroni, Treasury Masterminds board member, added:

“Citi partnering with Coinbase is a signal. The financial system is shifting, and global banks are positioning for a new payment infrastructure where speed, transparency, and programmability are no longer ‘nice to have’ — they’re expected. This isn’t about betting on crypto; it’s about modernising the rails that money moves on.”

The Bigger Trend: From Parallel Systems to Integration

For years, banks and digital-asset platforms operated in separate worlds — traditional finance on one side, crypto exchanges on the other. That separation is shrinking fast.

We’ve already seen:

• J.P. Morgan’s Onyx platform, using blockchain for intraday repo and cross-border payments.
• Visa and Mastercard pilots using stablecoins for settlement.
• Corporate treasuries experimenting with blockchain rails for internal transfers and supplier payments.

Now, with Citi and Coinbase teaming up, the message is clear: banks are no longer just observing digital assets; they’re integrating them.

This matters for treasury because the core promise of digital-asset rails aligns with what treasurers constantly seek — speed, transparency, cost efficiency, and control.

Lorena also noted:

“If cross-border transactions can settle in minutes, 24/7, with full traceability, then waiting days through legacy, expensive correspondent networks starts to look outdated — and questionable.”

Opportunities for Treasurers

1. Faster Cross-Border Settlement: Moving funds between subsidiaries or paying suppliers overseas can take days through traditional channels. Using stablecoins or blockchain rails could reduce this to minutes — potentially improving liquidity visibility and reducing working-capital buffers.

2. Extended Payment Hours: Unlike conventional banking systems bound by cut-off times, blockchain-based payments operate 24/7. This could reshape treasury’s approach to liquidity windows, especially for businesses operating across time zones.

3. Enhanced Transparency: Blockchain-enabled transactions are traceable and timestamped, offering real-time confirmation. For treasurers, that means fewer reconciliation delays and faster confirmation of fund flows.

4. Lower Transaction Costs: Depending on volume and jurisdiction, bypassing intermediary banks could reduce correspondent fees and FX spreads — though this will depend heavily on regulatory acceptance and liquidity depth in digital markets.

Lorena noted:

“Corporates are demanding better payment efficiency — faster liquidity, lower settlement costs, and more real-time control. Blockchain-based stablecoin rails can deliver exactly that.”

Risks & Governance Considerations

However, every opportunity brings its own complexity.

Regulation and Compliance: The legal framework around stablecoins and digital-asset payments is still evolving. Treasurers must ensure compliance with AML/KYC standards, sanctions screening, and data-protection requirements when onboarding digital-asset service providers.

Audit and Accounting: Under IFRS and GAAP, stablecoins aren’t yet treated as cash or cash equivalents, which complicates balance-sheet classification. Accounting teams will need clear guidance on valuation, reporting, and impairment.

Counterparty Risk: Even when working with a reputable exchange like Coinbase, treasury must evaluate the risk profile, custody arrangements, and service-level guarantees.

Operational Risk: Integrating digital-asset payments introduces new workflows — key management, wallet security, and reconciliation logic — that differ from traditional bank accounts.

Kortam Mohamed, Treasury Masterminds board member, adds

“This is a promising step — like Ripple–GTreasury. But mainstream adoption depends on the backend. Banks and fintechs must seamlessly integrate stablecoins and blockchain with fiat systems and invest in training so treasury teams can manage wallets and blockchain workflows securely. Build trust through operational reliability and proactive education.”

The Digital-Asset Readiness Framework for Treasury

At Treasury Mastermind, we’ve seen growing curiosity among treasurers about how to prepare — not just if they should. Below is a practical self-assessment framework to evaluate your digital-asset readiness in five dimensions:

Treasuries scoring low on these dimensions don’t need to jump in immediately — but they should start conversations, test internal processes, and engage with banks piloting these capabilities.

Lorena noted:

“Both corporates and banks must prepare the foundation. This isn’t about moving today — it’s about being ready when the market standard shifts: accounting, risk and compliance, treasury systems, and team capabilities.”

A Measured but Inevitable Shift

The Citi–Coinbase partnership doesn’t turn every treasurer into a blockchain enthusiast overnight. But it’s another sign that digital-asset infrastructure is moving from the edge to the core of institutional finance.

For now, the most pragmatic approach is to observe, learn, and prepare. Map where digital payments could add value, ensure your governance can accommodate them, and engage your banking partners about their roadmaps.

Kortam added:

“Only a dual focus on technological integration and proactive education will pave the way for broader acceptance of stablecoins as a viable, efficient tool in modern treasury management.”

As the lines blur between banking and blockchain, treasurers will be the ones deciding whether to lead, follow, or wait.

Also Read

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• Ripple Acquires GTreasury: What It Means for Corporate Treasury
• EuroFinance 2025: AI Takes the Stage, but Core Treasury Still Reigns
• Verification of Payee Is Live — But What Really Changed? With real life examples
• Why VoP is not enough: false matches, delayed payments, and the real risks Treasurers will face starting Oct 9th
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• Bank Capital Rules: Why Treasurers Should Care
• Treasury Table Amsterdam: Bridging AI, Technology and Treasury
• Stablecoins After the GENIUS Act: From Niche to Necessity for Treasurers?
• Visa Exits U.S. Open Banking — What Corporate Treasurers Should Know

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