Why We Aim to Replace Banks with a Revolutionary Super App

Coinbase CEO Brian Armstrong has articulated an ambitious vision for the company’s future: transforming Coinbase into a comprehensive crypto “super app” that could fundamentally replace traditional banking services. During a recent interview with Fox Business, Armstrong confirmed that the platform aims to offer a full spectrum of financial services, including payments, credit cards, and rewards — all leveraging blockchain and crypto rails.

“Yes, we do want to become a super app and provide all types of financial services,” Armstrong stated. “Our goal is for Coinbase to become people’s primary financial account, and I believe crypto is capable of fulfilling that role.”

He expressed skepticism about current banking practices, criticizing the system’s outdated and inefficient fee structures. “It amazes me — why are we paying two to three percent every time we swipe a credit card? It’s just data transfer over the internet, which should be near free,” he commented. This critique underscores Coinbase’s broader strategy to reshape financial interactions through blockchain technology.

Plans for a 4% Bitcoin Rewards Card

Armstrong revealed that one of Coinbase’s long-term projects is launching a credit card offering 4% rewards in bitcoin, positioning it as a potential replacement for traditional banking. “Ultimately, we want to serve as a bank substitute for users,” he explained.

The push for a super app is occurring amidst a clearer regulatory environment in the U.S. Armstrong highlighted recent legislative milestones such as the GENIUS Act and advances in broader market structure legislation in the Senate, suggesting that regulatory clarity is gaining momentum.

“We’ve partnered with major banks like JPMorgan and PNC,” Armstrong noted, “but their policies sometimes seem on a different page. We believe fair competition should be available to all players on a level playing field.”

Coinbase Embraces DeFi to Enhance USDC Yields

Cointelegraph reported that Coinbase has integrated decentralized finance protocols such as Morpho into its platform, allowing users to lend USDC directly without third-party DeFi platforms. This feature can enable yields reaching up to 10.8%, offering an innovative alternative to traditional savings methods.

This development comes amid regulatory scrutiny around yield-bearing stablecoins. The GENIUS Act and similar measures have called for tightening rules, with industry groups urging regulators to close perceived loopholes involving third-party DeFi yield strategies.

Coinbase dismisses these concerns, emphasizing that stablecoins are not a threat to lending but instead represent a modern evolution of banking revenue models, leveraging blockchain’s efficiencies to offer innovative financial services.