Coinbase Expands Stablecoin Payment Collaboration with Citi

Coinbase is collaborating with Citigroup to expand stablecoin payments and strengthen its institutional financial infrastructure business. Through this partnership, Coinbase's virtual accounts will be connected to Citi's financial network, allowing institutional clients to more smoothly convert between fiat currencies and stablecoins. Merchants can receive stablecoin payments through Citi's payment service, "Spring by Citi," which will be settled in fiat currency. Coinbase is enhancing its role as an institutional payment infrastructure beyond just a digital asset exchange, with future growth in subscription and service revenue being crucial. Currently, Coinbase's performance heavily relies on trading volume, raising concerns over a slowdown in trading activity and intensified fee competition. A revenue forecast of $8.5 billion and a net profit of $2.1 billion by 2028 has been presented, necessitating an average annual revenue growth of 8.3%. While the collaboration with Citi could positively impact this growth outlook, if Coinbase fails to sufficiently expand its new services, high growth expectations may become dependent on the performance of new business ventures.

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