Coinbase, a well-known crypto exchange, has grown beyond its original business model. The company’s CEO Brian Armstrong recently shared an interesting perspective. If Coinbase is classified as a bank, it is the 21st largest in the US, managing around $0.42 trillion in customer assets. It is more than some of the biggest names in banking today.
However, Armstrong doesn’t stop there. He points out that if Coinbase is considered a brokerage, it will actually rank eighth in the country by its managed assets. So, depending on how you view it, the exchange is already comparable to some of the major players in traditional finance.
However, when it comes to the payment sector, Armstrong acknowledges that it is difficult to pinpoint exactly where Coinbase resides. Still, the scale cannot be denied. Last year, around $30 trillion in stable coin payments were processed, but not all are related to goods or services.
It’s a one-stop shop, but it’s a cipher
The main idea shared by Armstrong is that the boundaries between traditional financial sectors such as banking, investments and payments are beginning to become brilliant, especially as they begin to use Crypto.
Many of these categories are based on older systems that don’t make much sense in the digital-first world. Like investment, it doesn’t make sense for your money to lose value rather than earn it. Why should checking accounts not earn interest like savings accounts or the Short-Term Ministry of Finance? These are questions about the mind of Coinbase CEOs.
He believes in the future, people will rely on a single financial account for everything: investments, spending, borrowing, and more. This is possible thanks to the efficiency of cryptography. It could also mean reduced transaction costs, more stable money, and ultimately greater economic freedom for people around the world, as Armstrong believes.
Discover more from Earlybirds Invest
Subscribe to get the latest posts sent to your email.
