Several major banks are quietly working with Coinbase on pilot programs involving stablecoins, digital asset custody, and crypto trading, according to Coinbase CEO Brian Armstrong.
Speaking Wednesday at the New York Times DealBook Summit, Armstrong said traditional financial institutions are increasingly looking to tap into the rapidly expanding digital asset market, although he declined to name which banks were involved.
“The best banks are leaning into this as an opportunity,” Armstrong said. “The ones who are fighting it are going to get left behind.”
His comments indicate that the banking sector, long cautious about cryptocurrency exposure, may be shifting toward broader integration as regulatory clarity and institutional demand continue to grow.
Digital Assets, Stablecoins, and Tokenization Discussed
Armstrong appeared alongside BlackRock CEO Larry Fink, where both executives discussed the future of digital assets, stablecoins, and tokenization. They highlighted how much capital is already sitting in digital form, particularly through stablecoins.
According to Bloomberg, Armstrong noted that roughly $4.1 trillion is currently held in digital wallets, with the majority composed of stablecoins tied to fiat currencies.
Both leaders stressed that tokenizing traditional assets, such as bonds, equities, real estate, and money market instruments, could significantly increase liquidity and reduce inefficiencies across global markets.
Fink reiterated BlackRock’s belief that tokenization represents the next major evolution in financial infrastructure, unlocking faster settlement, broader access, and reduced counterparty risk.
Implications for the Financial Sector
The involvement of banks in Coinbase-led pilot programs could mark an important development, signaling that Wall Street institutions may now view crypto not as a threat but as a potential extension of their existing services.
Stablecoins, in particular, are drawing attention for their growing use in payments, treasury management, and instant cross-border transactions.
While Armstrong offered few details, his message was clear: financial institutions that move first will shape how digital asset infrastructure develops. Those that wait may struggle to compete in an economy increasingly moving toward tokenized value and blockchain-based financial systems.