The corporate stablecoin race is intensifying, with traditional financial powerhouses like Citigroup and Western Union making significant strides into the digital asset space. These moves signal a growing recognition of stablecoins as vital components of the future financial landscape.
Citigroup is actively expanding its stablecoin payment capabilities, partnering with Coinbase to bridge the gap between traditional finance and the crypto world. The initial focus is on simplifying the conversion between fiat currencies and cryptocurrencies for Citigroup's institutional clients, streamlining both pay-in and pay-out processes. Debopama Sen, Citi's head of payments, emphasized the increasing client demand for programmability, conditional payments, enhanced speed, and round-the-clock payment access. This collaboration aims to provide 24/7 payment capabilities by connecting traditional banking infrastructure with blockchain-based payment systems. Citigroup has raised its forecast for the digital dollar market to $4 trillion by 2030, a substantial increase from the current $315 billion.
Western Union is also making a bold move into the stablecoin arena, announcing plans to launch its own stablecoin, the US Dollar Payment Token (USDPT), on the Solana blockchain in the first half of 2026. This initiative marks a significant step for the 175-year-old company into the digital asset space. The USDPT will be issued by Anchorage Digital Bank and aims to enable Western Union's extensive customer base of 100 million users to send money internationally without being exposed to the volatility of local currencies. Western Union's CEO, Devin McGranahan, views the launch as a natural evolution, leveraging technology to connect people, aligning with the company's long history. The USDPT will be accessible through partner exchanges and integrated into a new Digital Asset Network, connecting crypto wallets and Western Union’s 400,000 retail outlets worldwide. This stablecoin aims to reduce settlement times and transaction costs while decreasing reliance on traditional correspondent banking systems.
These developments follow the passage of the GENIUS Act, which establishes a regulatory framework for stablecoins, set to take effect in early 2027. This regulatory clarity has spurred traditional financial institutions to explore stablecoin-related services for their clients.
The potential impact of stablecoins is far-reaching. Citi predicts that stablecoins could power $200 trillion in annual transactions by the end of the decade. Investment firm Keyrock and crypto exchange Bitso estimate that stablecoins will account for 12% of global payments by 2030. A16z Crypto anticipates the entire stablecoin market to expand tenfold to $3 trillion in the same period.
Other major players are also vying for dominance in the stablecoin infrastructure space. Mastercard is reportedly in late-stage talks to acquire Zerohash, a stablecoin startup, for a deal worth up to $2 billion. This move would grant Mastercard direct access to APIs and settlement tools necessary for issuing and moving stablecoins at scale. Similarly, Stripe acquired stablecoin startup Bridge for $1.1 billion, and Coinbase is in exclusive talks to acquire BVNK for around $2 billion.
As stablecoins gain traction, they are being recognized for their potential to revolutionize global payments, treasury operations, and digital currency systems. The corporate stablecoin race is not just about technological innovation; it represents a fundamental shift in how money moves around the world.
