The main dishes to remember:
- With an alms of $ 420 billion, Coinbase is one of the most important players on the financial market.
- CEO Brian Armstrong plans a future where cryptographic platforms rationalize traditional financial services.
- Although it has been extended, user safety problems and complexity of transactions remain major obstacles to the generalized adoption of the crypto.
Coinbase seismic shift: the redefinition of finance with $ 420 billion in management under management
The financial world is undergoing a major transformation, a coinbase emerging as an excellent example. Initially an exchange of cryptocurrency, it is now evolving in financial power. With an impressive $ 420 billion in management assets (AUM), Coinbase is more than a simple place where you can exchange a virtual currency; It is an engine from the entire financial sector along the way. CEO Brian Armstrong declared This coinbase operates as a bank in the United States, and this is indeed true because the company introduces radical changes, which makes financial systems more accessible and interactive.
The revealed numbers: the alumnum figures of Coinbase in a word
The analogy of Armstrong de Coinbase with a traditional bank is based on its massive alms. He said that, in this context, Coinbase would rank like the 21st Bank Bank in the United States. As a brokerage, it would be successful on the basis of alms and would be the 8th largest.
According to Armstrong, the comparison of Coinbase with a traditional bank depends on its enormous alms. He stressed that, on the strength of this particular measure, Coinbase would be considered the 21st largest bank in the United States. As a broker, it would be the 8th largest based on AUM.
If you are thinking of Coinbase like a bank, we now have about 0.42 T $ of assets for our customers, which would make us the 21st largest bank in the United States by total assets and growth.
If you think of us more like a brokerage house, we would be the 8th brokerage today by AUM.
If you think of us …
– Brian Armstrong (@brian_armstrong) February 7, 2025
To put this in perspective, we can compare the alms of Coinbase with that of New York Community Bancorp (NYCB), the 21st largest bank in the United States. NYCB controls approximately $ 112.9 billion in assets, which are far from the assets of Coinbase. Thus, the very unequal distribution shows that the incredible growth of the cryptocurrency market was the engine and that virtual money supplementing traditional financing was a significant change in play in the wider financial sector.
Coinbase alum is not only a figure to boast; It represents an important financial influence. With such a considerable financial resource, Coinbase has the possibility of developing in the development and spread of various complex technologies and services related to digital money.
The “Neobank” revolution: consolidate financial services
It should be noted that Armstrong’s dream does not stop collecting assets just for good. It provides for the future of cryptocurrency platforms acting as “neobanks”, which will be able to make all the main financial services available in a single gentle and friendly interface. He believes that the traditional separation of banks, investments and payments is exceeded and ineffective.
Can you imagine a situation where you easily monitor your current account, investment parameters, cryptocurrency and also underestimate loans, from a single location? It is the Neobank revolution, and Armstrong is convinced that Crypto will be the tool to get there.
Empowerment is not only a question of convenience, this is vision. By rationalizing financial services, Neobanks can improve access to financial services for disadvantaged populations, promoting greater financial inclusion and economic opportunities.
Financial technology companies can simplify access to financial services, decomposing obstacles that have traditionally excluded many markets. Payment of transactions through Neobanks has increased at a higher adoption and use rate between people and businesses, especially among non -banished. Financial illiteracy and exclusive financial services have created obstacles that Neobanks operators lose. This, in turn, increases the financial inclusion rate, which in itself promotes a stable financial system and stimulates people’s economy.
To illustrate the idea of Neobobanking, let’s take the example of a freelancer. Usually, freelancers are forced to manage invoices, list expenses, pay taxes and maybe even using money to buy things in various applications. Thanks to a neobank fueled by cryptocurrencies, all these processes could be potentially automated. Payments can be made directly in cryptocurrency or exchanged in Fiat automatically. An intelligent contract could be set up to be able to automatically add expenses to students and teachers and tax obligations could be calculated and automatically canceled. In addition, their profits could be directly invested in dozens of crypto or traditional assets, throughout the same interface.
Quick update context and definition of stablecoins
Stablecoin transactions for 30 billions of dollars made last year are the first sign of the future evolution of payments which is very tempting for people. This highlights the power of stablecoins, which combine the speed and efficiency of digital currencies with the stability of fiduciary currencies.
They are considered a unique option for many uses, such as daily purchases, money transfers between countries. Imagine just send money to your friend / family member in seconds at no expense and without evolution rate. This is the advantage of stable -based payments.
However, industry must first be transparent and comply with regulations in order to gain more confidence and expand its use.
Take the elephant in the room: security, friction and regulation
On the one hand, the continuous development of Coinbase and the entire cryptography market is undoubtedly, but one cannot ignore the fact that there are still enormous problems to be solved. These are challenges, which include:
- Security presentations: security violations and hacks in cryptographic space have led to significant financial losses for users. Robust security infrastructure is essential to protect funds and maintain confidence in the network.
- Users’ friction: get a cryptographic wallet, manage seed sentences and otherwise struggle through complicated and long transactions can be a heavy task for new users. Making the most important thing to do to experience a wider audience.
- Regulatory uncertainty: the obvious lack of clear and consistent regulations in many different places causes disagreements and slows down the progress of technology. In this regard, the establishment of a reliable legal basis is crucial for a peaceful and prosperous market of cryptography.
Coinbase, as well as other industry leaders, actively works to meet these challenges, but a collective effort is necessary. The entire cryptographic community should prioritize safety, user experience and regulatory compliance to create a more mature and reliable ecosystem.
Coinbase profitability: a sign of maturation
Coinbase’s profitability in recent months is a convincing aesthetic, because it has found a business model that is effective in the long term. Coinbase announced a net profit of 273 million dollars, unlike the loss of 260 million dollars in NYCB during the same period, stressing the transition to the commercial models on crypto. Cryptomarket should mature and acceptance figures will increase, as a result of Coinbase will fully benefit from growth.
However, maintaining profitability will require Coinbase to continue innovating, expanding its product offers and effectively managing costs. It is a question of fact that the company must face and comply with the regulation of constantly evolving growth in industry and the preference of consumers.
Coinbase Q4, 2024, results of the gains. Source: Coinbase
Beyond the media threshing: the impact of the real world of cryptographic finance
The potential of cryptocurrency and blockchain technology to revolutionize finance goes beyond the next great thing to Wall Street and in Silicon Valley. Imagine a farmer in a developing country that can access microlaves via a decentralized loan platform, bypassing traditional banks and their high interest rates. Or think of a owner of a small business who can accept the cryptocurrency payments of the world’s customers without paying heavy transaction costs. These are just a few examples of how cryptographic finance can empower individuals and businesses, promoting greater economic inclusion and opportunities.
But that does not mean that it will be easy or simple. High-level fraud, carpet prints and flash-in-the-pan cryptographic diets must be avoided as industry and its governance become more established.
More news: Coinbase asks a court to declare the crypto and not a guarantee: a historic legal battle with the dry
The future of finance: a world powered by crypto?
The rapid expansion of Coinbase and Armstrong’s vision suggest that we are on the brink of a future where crypto serves a new financial system. Although the initial obstacles are always on the horizon, it is undeniable that a financial world supported by the crypto has incalculable advantages. After the technological advance and the rise of adoption, we are forced to see even more innovative and disturbing technologies in the years to come.
In the future, the collaboration between industry leaders, regulators and the wider community will be crucial to building a secure and sustainable cryptography ecosystem. Whether or not Coinbase becomes the next JP Morgan Chase, its impact on the future of finance is undeniable.
