Momentum around crypto adoption within traditional finance gained attention after fresh remarks from Brian Armstrong, the head of Coinbase. Armstrong challenged the idea that banks and crypto firms sit on opposite sides, presenting crypto infrastructure as a growth tool rather than a disruptive threat.
His comments highlighted how banks could strengthen services by integrating digital asset capabilities such as custody solutions, stablecoin issuance, and regulated access to decentralized finance systems. He stressed that community banks, not just large institutions, could compete by offering crypto services to local customers.
Coinbase already plays a role in this transition through a developer platform that provides white-labeled crypto infrastructure to banks. Several major institutions, including JPMorgan, PNC, and Citi, are already using these tools.
I’m all for banks integrating crypto infrastructure (big banks, community banks, etc). They should win big by adopting crypto as well.
We actually built a whole developer platform https://t.co/tX4FRODd7H that sells this to banks like JPM, PNC, Citi, and a bunch more in a white…
— Brian Armstrong (@brian_armstrong) January 17, 2026
Banks Explore Crypto Rails Amidst Internal Tensions
Armstrong explained that many commercial banking divisions are quietly preparing for crypto integration, focusing on customer demand and compliant blockchain-based services. Concurrently, he noted that resistance often originates from policy-focused arms within banks that utilize trade groups to limit competition.
He cautioned that such actions could negatively impact Americans by reducing financial choices and leading to lower returns for consumers. Armstrong emphasized that banks benefit more from open competition than restrictive regulation, as blocking crypto adoption may protect current margins but stifle innovation.
Stablecoin Rewards Emerge as a Flashpoint in Policy Debate
The discussion also encompasses stablecoin rewards, which Armstrong described as a key concern. This issue was a significant factor in his decision to withdraw support for a major market structure bill. During a television interview, Armstrong stated that stablecoin rewards enable users to earn more on their money, while restrictions, he added, often serve to preserve bank profits instead.
He criticized policies that limit Americans' access to higher yields through blockchain-based products, stressing that the core of the issue lies in fairness. Armstrong maintained that crypto does not aim to replace banks but rather offers tools that modernize payments, settlements, and savings products. He framed crypto infrastructure as an upgrade path for financial institutions, noting that adaptable banks can remain competitive as evolving expectations take hold.
Overall, Armstrong’s remarks highlighted a shift toward collaboration, suggesting that banks that embrace crypto tools may strengthen their market position.