Coinbase CEO Brian Armstrong issued a stark warning to traditional financial institutions during the New York Times DealBook Summit on December 3, 2025. Speaking at a moment when the divide between Wall Street and the crypto industry is widening, Armstrong said banks that fail to adopt stablecoins and on-chain financial infrastructure risk being left behind. He revealed that Coinbase is already running pilot programs with several major U.S. banks, covering stablecoin payments, crypto custody, and trading services, signaling a notable shift in how institutions engage with digital assets.
Banks Begin to See Opportunity, Not Threat
Armstrong noted that some top banks have started to recognize that stablecoins offer more than competition. They also represent a multi-billion-dollar modernization opportunity. These institutions, he said, are now evaluating stablecoins as a way to improve payments, reduce settlement costs, and bring 24/7 transaction capabilities to their clients. The sentiment marks a break from years of industry hesitation, where crypto innovation was often viewed antagonistically rather than strategically.
A Heated Policy Battle in Washington
The remarks also arrive amid a significant policy fight. Banks have been lobbying lawmakers to suppress stablecoin reward programs offered by platforms like Coinbase, arguing they could drain customer deposits. This dispute sits at the center of the new GENIUS Act, legislation designed to establish a regulatory framework for U.S.-issued stablecoins. Crypto supporters argue that the act unlocks innovation, while banks warn it shifts too much financial leverage toward fintech and digital-asset firms.
Armstrong’s comments highlight how legacy institutions are trying to slow the expansion of stablecoin utility at a moment when regulatory clarity is finally emerging.
A Sector Moving Deeper Into Mainstream Finance
Despite industry pushback, institutional interest continues to climb. Armstrong referenced the growing involvement of firms like BlackRock, which are increasingly integrating crypto products and stablecoin rails into their long-term strategy. This momentum reinforces his belief that digital assets are steadily merging with the traditional financial system, regardless of resistance from established players.
At the same time, several European banking giants have formed a consortium to launch a MiCAR-compliant euro-stablecoin. Other banks across Asia and the Middle East are exploring multi-currency stablecoins and tokenized deposits, positioning themselves for the next evolution of digital money. The operational benefits, instant settlements, lower cross-border costs, and automated on-chain workflows, are already too strong for many institutions to ignore.
Coinbase’s Long-Term Vision: A Direct Competitor to Banks
Armstrong reiterated that Coinbase aims to become a full-scale financial “super app”, offering banking-grade services such as payments, lending, wealth management, and rewards, all built on crypto rails. With stablecoin adoption accelerating globally and new regulatory frameworks taking shape, Coinbase sees itself competing directly with traditional banks rather than merely complementing them.
The message could not have been clearer: stablecoins are becoming foundational to the future of money, and banks that resist this transition risk losing relevance. Those that embrace it, Armstrong suggested, may find themselves operating at the center of a newly modernized global financial system.