Citigroup Inc. and Coinbase Global Inc. are partnering to enhance digital-asset payment solutions for the bank’s corporate clients, marking another major step by a traditional financial institution toward embracing blockchain technology.
The collaboration reflects Wall Street’s growing interest in digital assets after years of regulatory caution and market volatility.
The initiative aims to make it easier for Citi’s institutional clients to move funds between cryptocurrencies and traditional fiat currencies — a long-standing challenge in the digital economy.
The move comes as banks and payment providers increasingly explore blockchain to enable faster, cheaper, and more efficient transactions across global financial networks.
The initial phase of the Citi-Coinbase partnership will focus on simplifying the process of converting crypto to fiat and vice versa, particularly for cross-border transactions.
Debopama Sen, head of payments for Citi Services, said the bank’s clients are increasingly seeking innovations that go beyond traditional transaction models.
Citi’s clients want “programmability and conditional payments and other cost and speed and efficiency aspects,” Sen said, emphasizing the growing demand for payment systems that can operate continuously and offer greater flexibility than conventional financial rails.
Sen added that Citi is also “exploring solutions to really enable on-chain stablecoin payments for our clients” in the coming months, noting that stablecoins could play a key role in the evolution of corporate payment infrastructure.
“Stablecoins will be another enabler in the digital payment ecosystem,” she said.
“It’ll help grow the space, it’ll help grow functionality for our clients.”
Stablecoins — cryptocurrencies typically pegged to fiat currencies such as the US dollar — have become one of the most promising use cases for blockchain technology.
They combine the efficiency of digital payments with the relative stability of traditional money, making them increasingly attractive for corporate transactions and settlements.
Citi’s “Future of Finance” team, led by Ronit Ghose, has projected that the global stablecoin market could surpass $1 trillion within five years, up from about $300 billion today.
This growth outlook underscores how blockchain-based assets are rapidly evolving from speculative investments to tools for practical financial operations.
The collaboration with Coinbase follows Citi’s earlier introduction of a blockchain platform that enables institutional clients to move tokenized deposits around the clock within the bank’s internal network.
This system offers clients real-time settlement capabilities, reducing the delays and costs associated with traditional payment systems such as ACH and wire transfers.
Coinbase, one of the world’s leading digital-asset exchanges, brings extensive infrastructure and experience to the partnership.
The company works with more than 250 banks and financial institutions globally, according to Brian Foster, Coinbase’s global head of crypto-as-a-service.
“Coinbase has spent years developing very specialized infrastructure,” Foster told Bloomberg News, adding that traditional financial institutions are increasingly seeking partnerships across various crypto-related services — from spot and derivatives trading to custody, staking, and payments.
Foster said that growing interest in stablecoins, crypto exchange-traded funds (ETFs), and tokenized assets is prompting more financial institutions to engage with blockchain-based systems.
As Citigroup and Coinbase explore new ways to bridge traditional banking and digital assets, their collaboration signals how mainstream finance is steadily integrating blockchain into its infrastructure — moving beyond experimentation toward real-world adoption.
The post Citigroup and Coinbase partner to expand digital-asset payment capabilities appeared first on CoinJournal.
Japan has officially stepped into the regulated stablecoin era with the launch of JPYC EX, the country’s first fully licensed digital yen under the revised Payment Services Act. This milestone marks a pivotal moment for Japan’s financial sector, bridging traditional banking infrastructure with the Web3 ecosystem.
Building on earlier versions of JPYC, the new JPYC EX is designed to serve as a compliant, yen-backed stablecoin connecting the nation’s banking system to blockchain-based commerce, DeFi applications, and cross-border payments. With full legal authorization and asset backing, it positions the yen as a future cornerstone in global digital finance.
According to CryptoQuant, the total stablecoin market capitalization has now surpassed $150 billion, forming the backbone of liquidity for crypto markets, DeFi protocols, and global payments. Analysts from Citi and Bloomberg project that this figure could expand to between $1.6 and $4 trillion by 2030. Within that rapid growth, JPYC is forecasted to capture roughly 2% of the market, reaching a valuation of around $70 billion.
A Fully Regulated Digital Yen Bridging Japan’s Finance and Web3
What distinguishes JPYC EX from other stablecoins is its combination of regulatory clarity, asset backing, and technical versatility. Domestic bank deposits and Japanese government bonds fully collateralize each token, ensuring complete transparency and stability. This structure makes JPYC EX one of the world’s most legally robust stablecoins. A benchmark for compliance-driven innovation in digital finance.
Built on Ethereum, Polygon, and Avalanche, JPYC EX provides instant yen transfers with near-zero fees. Making it a practical tool for businesses and individuals alike. It supports commerce, payroll, peer-to-peer payments, and DeFi applications, offering the efficiency of blockchain without sacrificing legal or operational safeguards.
JPYC EX also aligns closely with Japan’s digital transformation strategy, which aims to merge traditional finance with emerging Web3 systems. By serving as a settlement layer for e-commerce platforms, NFT marketplaces, and cross-border transactions, the stablecoin enables instant yen transfers across Asia, lowering costs and increasing accessibility for international trade.
Looking ahead, analysts forecast JPYC’s market capitalization could reach $70 billion by 2030. It represents roughly 2% of the global stablecoin market. This growth potential underscores Japan’s ambition to establish the digital yen as a key pillar of the decentralized global economy. With its blend of regulatory trust, technological precision, and global reach, JPYC EX may redefine how national currencies operate in the Web3 era.
The chart shows that stablecoin market dominance currently sits around 8.31%, following a sharp rise earlier in October that pushed the ratio above 9%. This level often signals heightened demand for liquidity and safety, as traders move capital into stable assets amid market uncertainty.
Over the past few months, dominance has steadily climbed from the 7.3%–7.5% range, reflecting a cautious sentiment as Bitcoin and major altcoins face selling pressure. However, the recent pullback suggests that some funds are beginning to rotate back into risk assets, a potential early sign of market stabilization.
Technically, the dominance remains above both the 50-day and 200-day moving averages, indicating a broader uptrend in liquidity positioning. If this level holds, it may serve as a buffer during continued volatility. Conversely, a sustained drop below 8% could signal that traders are redeploying capital into crypto assets, possibly fueling short-term rallies.
Stablecoin dominance remains elevated — a sign that market participants still prefer holding dry powder. Until dominance begins a more decisive decline, this cautious stance will likely persist, underscoring the market’s fragile balance between risk-off sentiment and the readiness for re-entry into volatile assets.
Featured image from ChatGPT, chart from TradingView.com
The aftermath of the October 10 flash crash continues to weigh on the cryptocurrency market, with major digital assets still showing signs of strain. Recent data from an on-chain analysis sheds light on one of the underlying factors behind the market struggle.
In a recent QuickTake post on CryptoQuant, a market analyst with the username CryptoOnchain reported an interesting change in stablecoin activity on the Binance exchange. This analysis is based on readings from the ‘Total Stablecoin Netflow On Binance (Last 60 Days) & 7-Day MA ‘ and shows potentially compelling implications for the general market.
According to CryptoOnchain, the 7-day moving average of the combined stablecoin netflow (purple line) has decisively dipped beneath the ‘zero’ mark, marking a shift from sustained inflows to accelerating outflows.
Crypto Onchain further explained that the downward trend seen in the stablecoin netflow chart has been reinforced by significant spikes in outflows occurring over the past two days. With neither of the two major categories excluded, this ‘capital flight’ involves stablecoins both on the TRC20 network (one of which is USDT), and those operating under the ERC20 network.
Generally, an increase in stablecoin netflow to exchange platforms reflects an increasing demand for cryptocurrencies, as stablecoins are mostly exchanged for other online assets. Therefore, the decrease in stablecoin netflow presently seen signals reduced interest in other risky assets and a growing inclination among market participants to exclude themselves from participating in a risky market environment.
This pattern of capital exiting exchanges, especially after a major price correction, typically points to what the analyst termed “a weakening ‘buy the dip’ appetite.” If history is anything to go by, this could be an early sign that the crypto market is about to see an even more intense amount of bearish pressure, especially in the short term.
As of this writing, Bitcoin, the world’s leading cryptocurrency, stands at a valuation of approximately $111,400, showing a slight price growth of 0.54% over the past day. Also showing a similarly minute appreciation over the past 24 hours is Ethereum, which is worth about $3,936. Meanwhile, the total stablecoin market cap remains valued at $319 billion following a 0.14% gain in the past day.
Reports have disclosed a 400% rise in stablecoin transfers on Ethereum over the last 30 days, pushing total transfer volume to $581 billion and more than 12.5 million transfers, according to Token Terminal.
The stablecoin market cap on Ethereum now tops $163 billion. At the same time, Ethereum has fallen about 4.50% in the past week, and briefly tested support near $3,738, which some traders called a buying opportunity.
On-chain trackers show heavy buying from large holders. A newly created wallet, 0x86Ed, spent $32 million to pick up 8,491 ETH in roughly three hours, based on Arkham Intelligence records.
Another high-profile account monitored by LookOnChain moved 284K USDC into Hyperliquid after recent liquidations, apparently to maintain long exposure to ETH.
Reports say October’s stablecoin transaction volume on Ethereum passed $1.91 trillion for the second time on record, a sign that big flows are still moving through the network.
USDT usage on Ethereum is at an all-time high, with key metrics up ~400% from Sep ’23 lows.
Monthly transfer volume in September was $580.9 billion & transfer count 12.5 million.
At a ~$500 billion valuation, @Tether_to is the most valuable business building on @ethereum. pic.twitter.com/Z83e68NO8C
— Token Terminal
CryptoQuant and exchange data point to a rise in institutional interest. CME futures open interest for ETH has climbed, suggesting larger players are setting positions ahead of a potential price move.
Fundstrat’s Tom Lee was cited saying ETH could head toward $5,000 if the ETH/BTC ratio clears the 0.087 resistance. Matt Sheffield, CIO at Sharplink Gaming, told analysts that past liquidations did not stop real use and that the scale of payments on legacy systems — SWIFT processes about $150T a year — shows how much room exists for stablecoins to grow on Ethereum.
Big money is flowing into #Ethereum institutional interest is clearly rising fast….
The surge in CME futures open interest signals that smart money is gearing up for a major $ETH move ahead… pic.twitter.com/8oUfApDeoP
— BitGuru
Technical analysis experts have noted a confluence of indicators near today’s prices. Currently, ETH is trading near $3887, just above the significant Fibonacci retracement of 0.618 at $3781.
The 0.786 retracement is near $3,640 with the level of formal invalidation set at $3443. Some technicians have pointed to a triple bottom trading pattern around $3600, as well as the potential for a new accumulation reading from a Wycoff re-accumulation pattern which could lead to higher targets (notably $5125 at the 1.618 extension.
Balance Between Flow And RiskIn sum, with heavy stablecoin flow, whale buying, and increasing interest in futures, this has created a basis for bullish calls into the $5000 range.
That said, chart patterns fail, on-chain movements may not lead to changes in price, and traders who remain cognizant of the ETH/BTC ratio, the invalidation line at $3443, and whether large transactions are transferring or being used for longer-term custody, may get more clarity in the coming sessions.
Featured image from Motion Island, chart from TradingView
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