Coinbase CEO Brian Armstrong confirmed during a panel at the New York Times DealBook Summit that the exchange is actively collaborating with several of the largest U.S. banks on pilot programs.
These initiatives focus on integrating cryptocurrency infrastructure into traditional banking systems, marking a significant acceleration in Wall Street’s adoption of digital assets. Armstrong emphasized that “the best banks are leaning into this as an opportunity,” while those resisting risk being “left behind.”
The pilots are exploratory and low-risk for banks, allowing them to test crypto elements without full-scale commitments. Banks are experimenting with stablecoins like USDC, issued by Coinbase for faster settlements, cross-border payments, and tokenized finance.
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These digital dollars could handle trillions in daily transactions with lower costs and near-instant execution. Armstrong projects the stablecoin market could reach $1.2 trillion by 2028, driven by thousands of use cases in payments and treasury management.
This involves secure storage of digital assets for institutional clients, addressing regulatory and security concerns. Banks can leverage Coinbase’s existing infrastructure to offer custody without building it in-house, reducing risks like hacks or compliance issues.
Pilots test direct crypto trading integrations, enabling banks to offer clients seamless access to buy, sell, and trade assets like Bitcoin or Ethereum through familiar platforms.
Specific bank names weren’t disclosed in Armstrong’s remarks, but recent partnerships provide context: JPMorgan Chase: Announced in July 2025, integrating USDC rewards, Chase card funding for crypto buys, and direct bank-to-Coinbase transfers for over 80 million users starting in 2026.
PNC Bank partnered in July 2025 to let 9 million customers buy, hold, and sell crypto directly in accounts, with PNC providing banking services to Coinbase in return. Citibank joined in October 2025 for cross-border payments using Coinbase’s tech, managing over $35 trillion in assets combined with JPMorgan.
These build on Coinbase’s role as a “bridge” between traditional finance (TradFi) and crypto, with pilots going live as early as this summer. The announcement came alongside BlackRock CEO Larry Fink, who reiterated Bitcoin’s role as a hedge against financial and geopolitical risks—echoing $23 billion in spot Bitcoin ETF inflows this year.
This convergence highlights a shift: Banks aren’t just dipping toes; they’re wiring crypto into core operations for efficiency gains, like 24/7 settlements and reduced reconciliation costs.
On X, the news sparked buzz about institutional adoption, with users noting it’s “not hype—it’s infrastructure” and predicting a “wealth shift” as banks merge with crypto rails.
Banks are no longer treating crypto as a speculative side bet — they’re integrating it into payments, custody, and treasury stacks. Crypto rails especially stablecoins will settle trillions annually by 2028, competing directly with SWIFT, FedWire, and correspondent banking.
Coinbase becomes the “AWS of money movement”, Circle (USDC), and any bank that moves fast. Banks that stay on the sidelines higher costs, slower settlement, client loss. Cross-border payments cost 6–7% and take 1–5 days.
With USDC/USDP on Coinbase + bank integrations: ~0.1% cost, seconds to settle, 24/7/365. JPMorgan, Citi, and PNC pilots prove banks now see stablecoins as upgrades, not threats. $2–3 trillion in annual stablecoin settlement volume by 2027.
Institutions that custody/trade crypto in-house via Coinbase Prime or direct integrations keep 50–80 bps of spread that currently goes to third-party brokers. Retail customers at partnered banks— JPM, PNC, Citi = 150+ million users get seamless crypto access ? explosive on-ramp volume.
Coinbase’s revenue mix shifts from volatile trading fees ? high-margin, recurring enterprise revenue. Stablecoin volumes are up 20% year-over-year, and with clearer rules like the pending CLARITY Act, more pilots could scale to production in 2026.
Coinbase’s stock (COIN) rose about 5% to around $277 on the news, buoyed by broader crypto rebounds Bitcoin above $92,000. This isn’t isolated—it’s part of a trend where exchanges like Coinbase evolve into financial “pipes,” blending banking and blockchain.
In short, these pilots signal crypto’s maturation: From fringe experiment to essential infrastructure. If you’re in finance or investing, this is the quiet revolution to watch.
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