In a recent social media post, Coinbase CEO Brian Armstrong has made the case that traditional banks stand to benefit significantly by integrating cryptocurrency infrastructure.
Armstrong emphasized that both large and community banks should consider building crypto capabilities. These include custody, stablecoin issuance, and access to decentralized finance (DeFi) systems.
"They should win big by adopting crypto as well," Armstrong wrote, pointing to Coinbase’s developer platform that offers white-labeled solutions to banks such as JPMorgan, PNC, and Citi.
Armstrong has clarified that the debate should not be framed as "banks vs. crypto." The Coinbase boss posits that the reality is more nuanced. He noted that commercial divisions of many banks are already moving toward crypto rails and preparing for customer participation in compliant DeFi environments. The sticking point, he adds, lies in the policy arms and trade groups of banks, which tend to work to block competition in ways that could disadvantage Americans.
"They need to respect a level playing field competitively, and not engage in regulatory capture, otherwise it’s Americans who will be harmed. Banks need competition," Armstrong stressed.
The stablecoin reward issue
During a recent interview with Fox Business, Armstrong stressed that the stablecoin reward issue is "very important" after recently withdrawing support for the key market structure bill.
“This stablecoin reward issue is very important, and I think… we have a world where banks don’t allow Americans to earn more on their money, trying to protect their profit margins, taking money out of the pockets of hardworking average Americans, putting it into the coffers of big banks, hitting record profits," he said.
Armstrong has stressed that there should be a level playing field where banks and crypto companies.
Alex Dovbnya
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