Citi and Coinbase Pilot Stablecoin Payments Under GENIUS Act
Citigroup and Coinbase have launched a pilot program to offer stablecoin payments for corporate clients, leveraging programmable onchain USDC to enable faster, conditional, and 24/7 global transactions. The initiative follows the US Congressional approval of the GENIUS Act, which establishes a regulatory framework for stablecoin issuance and operations from 2027. Citigroup forecasts the digital dollar market could surge from $315 billion today to $4 trillion by 2030, driven by institutional demand for efficient cross-border payments. By integrating stablecoin payments, Citi aims to bridge traditional banking infrastructure with crypto rails, joining peers like JPMorgan and Bank of America in testing onchain solutions. The pilot underscores growing institutional interest in digital asset solutions, highlighted by Circle’s USDC share jump post-IPO and the banks’ push to digitize fiat rails.
Bullish
The Citi–Coinbase pilot signals growing institutional adoption of stablecoin payments, particularly USDC. In the short term, the regulatory clarity from the GENIUS Act and the high-profile partnership can drive increased transaction volume and onchain demand, providing price support for USDC. Over the long term, mainstream banks’ integration of programmable stablecoin rails may expand use cases in cross-border settlements and corporate treasury operations, reinforcing stablecoin utility and liquidity. Historical precedents show that institutional pilots and regulatory frameworks often precede broader market adoption, underpinning a bullish outlook for USDC.