Introduction
As Wall Street’s adaptation to the digital age accelerates, the differences between Traditional Finance (TradFi) and blockchain technology are being eroded. The importance of investing in crypto assets has begun to reshape the future of finance. This transition is not just a trend; it could be a fundamental transformation of the global financial system’s infrastructure. Led by major banks from Citi to JP Morgan, digital assets are finally becoming a service layer for traditional banking and capital markets. Traditional Finance is stepping into the age of tokenization. This report will examine the partnership between Citibank and Coinbase and discuss other finance–crypto collaborations.
Traditional Finance’s Digitalization Process and Collaborations
These collaborations are critical in terms of the convergence of traditional banking and crypto/digital asset infrastructure. This situation has begun to rapidly integrate the efficiency brought by crypto assets with Traditional Finance institutions, once seen as two separate poles, by increasing their integration with technology and customer expectations. As an example, a new type of digital currency has been introduced, designed to maintain the value of systemic stablecoins denominated in sterling. It is expected to become usable in both retail payments and wholesale settlement transactions in the future. The UK, which aims to implement this application, plans to put the stablecoin regulatory regime into effect by the end of 2026. For the bank (Citi), this means partnering with Coinbase to take its payment and asset management solutions a step further. For Coinbase, this represents an opportunity to strengthen its position in the corporate arena by working with a major financial institution.
| Traditional Financial Institution | Digital Institution/Project | Launch Date | Partnership Purpose |
|---|---|---|---|
| Visa (payment network) | Circle (USDC) | December 3, 2020 | To integrate the USDC stablecoin into Visa’s global network, providing businesses with fast and low-cost payment and settlement capabilities |
| PayPal (payment system) | Paxos
(cryptocurrency infrastructure) |
October 21, 2020 | Enabling PayPal customers to buy and sell Bitcoin, Ethereum, Bitcoin Cash, and Litecoin through the PayPal app; making crypto assets available as a payment source |
| BlackRock (asset management) | Coinbase
(cryptocurrency exchange) |
August 4, 2022 | To provide institutional clients using BlackRock’s Aladdin platform with trading and custody access to digital assets like Bitcoin through the Coinbase Prime integration |
| Mastercard
(card network) |
Paxos
(blockchain infrastructure) |
October 17, 2022 | Using Paxos’ crypto brokerage infrastructure under Mastercard’s “Crypto Source” program to enable banks to securely offer crypto trading services to their own customers |
| Commonwealth Bank (Australia) | Gemini & Chainalysis | November 3, 2021 | CBA is partnering with Gemini (exchange/custody) and Chainalysis (blockchain analytics) to offer individual customers the ability to buy, sell, and store cryptocurrencies such as Bitcoin and Ethereum via the CBA mobile app |
| Standard Chartered (UK) & Northern Trust (US) | Zodia Custody
(joint venture) |
December 9, 2020 | To establish an FCA-regulated cryptocurrency custody firm where institutional investors can securely store digital assets like Bitcoin and Ethereum |
| Standard Chartered (UK) & BC Technology (Hong Kong) | OSL–SC Ventures
(joint exchange venture) |
June 2, 2021 | Establishing a secure digital asset brokerage firm and crypto exchange platform for institutional and corporate clients in the UK and Europe |
| BNY Mellon (US) | Fireblocks & Chainalysis | October 11, 2022 | As the largest custodial bank in the US, integrating Fireblocks (custody infrastructure) and Chainalysis (compliance) technologies to securely hold customers’ digital assets such as Bitcoin and Ether |
| Mastercard (US) | Bakkt
(digital asset platform) |
October 25, 2021 | To enable banks, fintech companies, and businesses in the U.S. to offer their customers cryptocurrency trading, cryptocurrency reward points, and cryptocurrency cards, Mastercard is integrating its network with Bakkt’s cryptocurrency infrastructure |
| Mastercard | Coinbase
(NFT platform) |
January 18, 2022 | Enabling users to purchase NFTs (digital collectibles) directly with Mastercard credit/debit cards on Coinbase’s NFT marketplace without requiring a cryptocurrency wallet |
| Mastercard | Binance
(crypto exchange) |
August 4, 2022 | To enable the use of cryptocurrencies for daily purchases, Binance partnered with Argentina to issue a prepaid card that instantly converts crypto balances into fiat currency for POS payments. |
| Goldman Sachs (US) | Galaxy Digital
(financial services) |
June 18, 2021 | Using Galaxy Digital as a liquidity provider for block trades in the CME Group Bitcoin futures market on Goldman Sachs’ reopened crypto trading desk, driven by increased institutional demand, to ensure best price execution and risk management |
| MoneyGram (US) | Stellar & Circle
(USDC) |
October 6, 2021 | By integrating MoneyGram’s global payment network with the Stellar blockchain and Circle’s USDC stablecoin, offering a low-cost, near real-time cross-border remittance service where cash can be instantly converted to USDC or USDC to cash |
| J.P. Morgan (US) | ConsenSys
(Ethereum infrastructure) |
August 25, 2020 | The acquisition of Quorum, the enterprise Ethereum blockchain platform developed by JPMorgan, by ConsenSys, signifies the two organizations joining forces in enterprise blockchain development and JPMorgan establishing a long-term technology partnership with ConsenSys |
| DBS Bank (Singapore), JPMorgan (US) & Temasek (SG) | Partior
(joint venture) |
April 28, 2021 | To create a blockchain-based payment and settlement platform that operates in real time, 24/7, using digital currency (digitized deposits) for interbank payments, trade transactions, and foreign exchange, replacing the slow and costly “hub and spoke” model currently used for international money transfers |
| SWIFT
(global banking network) |
Chainlink
(blockchain oracle) |
September 28, 2022 | To enable digital asset transfer instructions across different blockchain environments using SWIFT interbank payment network messages and to ensure interoperability between traditional finance and crypto asset platforms |
| Deutsche Bank
(Germany) |
Taurus
(Switzerland, digital asset infrastructure) |
September 14, 2023 | Utilizing Taurus’ custody and tokenization technology to securely store Deutsche Bank’s corporate clients’ cryptocurrencies and security tokens |
Coinbase and Citibank Partnership
The partnership between Citi and Coinbase was officially announced on October 27, 2025. Citibank, like many large institutions including JP Morgan, is pursuing projects aimed at bridging digital assets and traditional finance. The goal of the partnership is stated to be “developing digital asset payment capabilities for institutional clients.” The partnership focuses particularly on facilitating fiat-to-crypto transitions (on-/off-ramps). It enables institutional clients to execute fiat-to-crypto transactions faster and more efficiently, thereby increasing options for stablecoin usage. Citi’s global payment infrastructure is quite extensive. It has over 300 payment networks and active operations in 94 markets. Adding crypto and digital asset transition capabilities to this infrastructure is an important step towards modernizing the bank’s payment solutions. Early entry into crypto/digital asset services can enable banks to stand out in the competition by offering innovative payment solutions to customers. Cryptocurrency infrastructure can reduce the time and cost of fiat transactions. It can deliver significant efficiency gains, particularly in cross-border payments, thanks to blockchain technology.
Overall Assessment
This type of collaboration could strengthen Coinbase’s position as an institutional infrastructure provider serving financial institutions. Institutional clients may have very high expectations regarding security, compliance, and operational integration. Compliance and risk management are important for the bank. Collaboration between a large global bank and a crypto platform involves technical and operational challenges. The volatility of crypto markets and past events (e.g., hacks) may affect the bank’s risk perception. An increase in similar collaborations between other major banks and crypto companies may diminish the advantage Coinbase gains from this partnership over time. Coinbase continues to be subject to regulatory oversight in the US and other countries. The banking partnership may increase this pressure. Ultimately, the rapid digitization of the banking system plays a significant role in the process of regulating and legalizing crypto assets.
Disclaimer
The information provided in this article is for general informational purposes only and does not constitute financial, investment, or legal advice. While efforts have been made to ensure accuracy, the digital asset sector evolves rapidly, and new regulatory or market developments may affect the information presented. Readers should conduct their own research or consult qualified professionals before making financial decisions. Any actions taken based on this material are strictly at the reader’s own risk.
