Coinbase is currently the 21st largest bank in the United States in terms of total assets, with $420 billion in assets.
It is the 21st largest bank in the United States by total assets and the 8th largest brokerage by assets under management, with a total of ($0.42T) in customer assets.
Armstrong wrote in a post on X, “We currently retain approximately $0.42T in assets for our clients if you consider Coinbase to be a bank.” “We would be the eighth largest brokerage today by AUM if you viewed us more as a brokerage.”
Armstrong contends that cryptocurrency is eroding the distinctions between finance, brokerage, and payments. Despite the frequent comparisons between Coinbase and conventional financial institutions, he posits that legacy finance is overly fragmented.
“He stated that the updated financial system will consist of a singular primary financial account that will fulfill all of these functions.” “A greater percentage of the global GDP will soon be operating on more efficient crypto rails.”
Additionally, the CEO of Coinbase identified inefficiencies in conventional banking. “Why does the money you expend depreciate in value rather than increasing in value, as it would in an investment?” What is the reason for the lack of yield in your checking account, as opposed to a savings account or, even better, short-term treasuries?
Additionally, Armstrong has advocated for a significant overhaul of Coinbase’s token listing process, in addition to asset development. He acknowledged the obstacles presented by the proliferation of new cryptocurrencies in a post on January 24.
He wrote, “Given the current creation rate of approximately one million tokens per week and the ongoing growth of this figure, it is imperative that we reconsider our listing process at Coinbase.” He suggested transitioning from a manual “allow list” approach to a block list system, which would utilize automated searches of on-chain data and customer reviews.
Armstrong also disclosed Coinbase’s intentions to enhance its integration with decentralized exchanges (DEXs). He envisions a future in which consumers will not be required to be aware of or concerned about whether the transaction is taking place on a DEX or CEX [centralized exchange].
This occurs in the context of increasing optimism regarding the potential for more lenient crypto regulations in the United States under the administration of President Donald Trump.
“After the World Economic Forum in Davos, which concluded on January 24, basically every conversation I had with significant market executives was focused on what the Trump Administration intended to do on crypto,” he stated in a separate X post.
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