Coinbase aims to become a full financial “super app,” according to its CEO, Brian Armstrong. The company wants to offer many crypto-powered financial services through its app. This setup would act as a clear alternative to old-school banking.
Armstrong confirmed that Coinbase plans to bring payments, cards, and crypto rewards together. All of these will live on a single platform. The firm looks to replace traditional banks by offering a full suite of financial tools. This integration happens as rules around crypto become clearer, and debates about earning interest on stablecoins continue.
Coinbase, a leading cryptocurrency exchange, is working to be a complete financial hub. It seeks to directly compete with traditional banks. Brian Armstrong, the chief executive, said the company is building a “super app” with full financial services. These services will run on crypto technology.
In a recent chat with Fox Business, Armstrong explained Coinbase’s goal. It is to replace traditional banks and be the main financial account for millions of people. The new app will have payments, credit cards, and rewards programs. All parts will use blockchain technology. Armstrong stressed that the goal is “to become a super app and provide all kinds of financial services.” He added that “cryptocurrencies have a right to do so.” This plan is a big step in Coinbase’s long-term dream to be a bank replacement.
A Look at Today’s Banking System
Armstrong criticized the current banking system during his interview. He called it old and slow. He pointed to the 2% to 3% fees on credit card payments. These show how costly the traditional system can be. “It’s just information moving on the internet,” he said. “It should be free or nearly free.”
Coinbase plans to introduce a credit card that gives 4% rewards in Bitcoin. With this move, the company hopes to change how people handle their daily money. It offers cheaper and more open options than regular banking services. This idea comes as the United States sees more clear rules for cryptocurrencies. Armstrong noted laws like the GENIUS Act as signs of progress in the financial market. He said that “the regulatory train has already left the station.”
The CEO also mentioned that Coinbase works with banks like JPMorgan and PNC. Yet, he criticized some parts of these banks. He said they use “different playbooks.” He would prefer they “played on a level field with other companies.”
Connecting DeFi and Yield-Bearing Stablecoins
Coinbase recently added the Morpho decentralized lending protocol to its app. This lets users lend USDC directly. They do not need outside DeFi platforms. This move happens amid discussions about stablecoins that offer yield. The GENIUS Act currently bans these.
Many groups, including the Bank Policy Institute (BPI), have asked Congress to close loopholes. These loopholes let people earn yield through DeFi connections. The BPI warned Congress that not fixing these gaps could lead to big money moves. Up to $6.6 trillion might leave traditional banks. This would hurt the amount of credit available for businesses and families.
The BPI argued that stablecoins are different from bank deposits or money market funds. They do not fund loans or invest in securities. This, the BPI said, makes it more likely money will leave during tough times. It would also raise interest rates and make credit more costly for homes and businesses.
Coinbase’s View
Coinbase has pushed back against these claims. It says stablecoins do not threaten credit. Instead, they offer a fresh option to outdated banking models. “Stablecoins don’t threaten loans: they offer a competitive alternative to the $187 billion annually in bank transaction fees,” the company stated.
The company added that stablecoins are for payments, not savings. “Someone buying stablecoins to pay an overseas vendor is not reallocating their savings,” Coinbase explained. “They are choosing a faster, cheaper payment method.”
With this strategy, Coinbase is ready to compete. It will challenge crypto exchanges, traditional banks, and newer financial tech companies. It bets that many people using blockchain-based financial services can change how they manage their money.