Citi, Coinbase to develop digital asset payment solutions

NEW YORK - Citi, a prominent player in the banking industry that has maintained dividend payments for 15 consecutive years, and Coinbase announced Monday their plans to collaborate on developing digital asset payment capabilities for institutional clients, according to a press release from both companies. According to InvestingPro data, Citi currently trades at an attractive valuation relative to its near-term earnings growth potential.

The initial phase of the collaboration will focus on streamlining fiat pay-ins and pay-outs to support Coinbase’s on-ramps and off-ramps, which serve as bridges between traditional currency and digital asset ecosystems. The partnership will also address payments orchestration. With 8 analysts recently revising their earnings estimates upward for the upcoming period, Citi appears well-positioned for this strategic initiative.

"The financial landscape is changing fast, and we’re thrilled to join Coinbase to explore new and innovative payment options for our global clients," said Debopama Sen, Head of Payments Services at Citi.

Both companies indicated they will share additional details on specific initiatives in the coming months, including potential exploration of alternative fiat to onchain stablecoin payout methods. The collaboration aims to make transitions between traditional and digital finance smoother and accessible around the clock for Citi’s clients.

Brian Foster, Global Head of Crypto as a Service at Coinbase, stated that "Citi’s global network and expertise in payments make them an ideal partner as we work to advance digital asset capabilities."

The partnership builds upon Citi’s existing digital payment solutions, including Citi Token Services and 24/7 USD Clearing. Citi currently operates in 94 markets globally with more than 300 payment clearing networks.

Citi banks 90% of the top eCommerce companies and 15 of the world’s 20 largest FinTechs, according to the press release. The bank has demonstrated strong returns over the past year and five years, as revealed in InvestingPro’s comprehensive analysis, which includes 10+ additional key insights available to subscribers. Coinbase (NASDAQ:COIN) provides a platform for trading, staking, safekeeping and transferring crypto assets.

In other recent news, Citi reported better-than-expected third-quarter earnings, with core earnings per share of $2.24, excluding a $726 million pre-tax goodwill impairment related to the sale of a 25% stake in Banamex. The bank’s pre-provision net revenue surpassed consensus estimates by 17%, driven by strong fee income and solid net interest income. Citi’s Board of Directors has elected CEO Jane Fraser as Chair, consolidating the company’s top leadership positions. Alongside this appointment, Fraser received a one-time equity award valued at $25 million in Restricted Stock Units and over a million Citigroup stock options.

Analysts have responded positively to Citi’s earnings. Keefe, Bruyette & Woods raised Citi’s stock price target to $118, citing a solid third-quarter performance and confidence in the bank’s ability to reach its 2026 financial targets. Piper Sandler also increased its price target to $110, though it slightly reduced its 2025 earnings per share estimate from $7.56 to $7.50 due to the bank’s reported underperformance relative to its estimate. UBS maintained a Neutral rating with a $100 price target, acknowledging the strong earnings report. Similarly, TD Cowen raised its price target to $110, maintaining a Hold rating, following Citi’s robust third-quarter results and an upward revision of its full-year 2025 outlook.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.