Coinbase Global Inc. (NASDAQ:COIN) CEO Brian Armstrong said on Saturday that the cryptocurrency giant “has come a long way” since its launch and is now facilitating institutional stablecoin payments.
Armstrong Hails Citi Partnership
Armstrong celebrated Citigroup Inc.’s (NYSE: C) partnership with Coinbase to enable stablecoin payments for large institutional clients.
“We’ve come a long way from 2012. Thank you, Citi,” Armstrong said.
The cryptocurrency tsar recalled that securing bank partnerships back then was "nearly impossible," but major players like Citi are now finally using Coinbase’s services to bring stablecoins to institutions.
Under the partnership, Citi’s institutional clients, including multinational corporations, will be able to accept stablecoin payments from customers at checkout through the bank’s merchant-processing services.
The arrangement also allows Coinbase customers to use Citi’s banking capabilities while automatically converting incoming cash into stablecoins.
Coinbase’s Push for Stablecoins
Armstrong has strongly advocated for stablecoins, contending that they offer people in high-inflation countries a simple way to access more stable global currencies without emigrating.
Stablecoins are a key and rapidly growing component of revenue for Coinbase. The company shares interest income on the reserve assets backing USDC (CRYPTO: USDC) with Circle Internet Group Inc. (NYSE:CRCL) and monetizes customer balances held on the platform.
Notably, the USDC held in Coinbase products reached an all-time high of $20 billion in the second quarter, accounting for more than 30% of all USDC in circulation.
Price Action: Coinbase shares finished Friday down 3.32% at $183, according to Benzinga Pro. Benzinga’s Edge Stock Rankings note a stronger short- and medium-term price trend, but weaker long-term performance.
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