Citigroup and a cryptocurrency exchange named Coinbase have announced a plan to work together on digital asset payment services for the bank’s institutional clients. The goal is to later expand this service to clients in other countries.
The partnership will first focus on letting users deposit and withdraw traditional money through Coinbase services. This is an important step because it helps connect traditional currency with digital assets like cryptocurrencies. The two companies shared this information in a joint statement on Monday.
Citigroup also said that this collaboration will make payment operations easier.
“By combining their reach with Coinbase’s leadership in digital assets, we are creating solutions that can simplify and expand access to digital asset payments,” said Brian Foster who is the global head of Crypto as a Service at Coinbase.
Citigroup said that more information on the service features will be shared in the coming months. This includes plans to look at ways to change traditional currency into stablecoins.
Stablecoins are a type of digital token that are designed to keep a constant value. These are usually backed by traditional money such as the United States dollar or government debt.
Stablecoins have become very popular. Their demand is likely to increase because the United States passed a law in July that sets national rules for stablecoins.
Business deals in the digital asset market have increased this year. A government administration that supports cryptocurrency has encouraged companies to grow their business in the United States. This has created a positive environment for investment.
Coinbase is one of the largest cryptocurrency exchanges in the world. The company spent three hundred and seventy five million United States Dollars to buy an investment platform named Echo. Earlier this year it agreed to a two point nine billion United States Dollar deal to buy a company that provides crypto options named Deribit.
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