Citi-Coinbase Stablecoin Push Meets Regulatory Action

Citigroup and Coinbase announced a partnership to pilot stablecoin payment solutions for institutional clients, focusing on fiat-to-onchain payouts, improved fiat on/off-ramps, programmable cross-border transfers and 24/7 settlement. Coinbase Asset Management also partnered with Apollo Global Management to roll out stablecoin credit strategies including over-collateralized lending, corporate direct lending and tokenized credit products. Those commercial efforts are unfolding as U.S. policy action — notably the GENIUS Act and related guidance — has formalized a federal framework and permits federally insured credit union subsidiaries to issue payment stablecoins, prompting smaller financial institutions to participate. Accounting and prudential bodies are moving too: the FASB has advanced a stablecoin accounting project and global regulators are reexamining Basel treatment after a surge in stablecoin activity. Key debates remain over reserve composition, custody/AML controls, payment versus DeFi use cases and money velocity, meaning clear supervisory, accounting and custody frameworks are needed to realize benefits and limit operational or systemic risks.