Coinbase CEO reveals plan to challenge banks with crypto super app

Coinbase CEO Brian Armstrong has teased the idea of creating a full crypto-focused super app. According to Armstrong, the long-standing vision of the company still remains to replace traditional banks, and it will move a step closer to achieving this goal through the development.

Speaking at a recent interview with Fox Business, Armstrong confirmed that the company has plans to offer a full range of financial services to its clients. These services will include payments, credit cards, and rewards, with all the services powered by crypto rails.

“Yes, we do want to become a super app and provide all types of financial services,” Armstrong said. “We want to become people’s primary financial account, and I think that crypto has a right to do that.”

Coinbase CEO plans to build a crypto super app

In the interview, the Coinbase CEO criticized the current banking system. He mentioned that it is outdated and inefficient, pointing to the high transaction fees as one of the main pain points. “It kind of boggles my mind. Like, why are we paying two to three percent every time we swipe our credit card?” he asked. “It’s just some bits of data flowing over the internet. It should be free or close to it.”

According to Armstrong, the long-term goal is to ensure that the platform offers the best services across the board, including a credit card that offers 4% Bitcoin rewards. “Ultimately, we want to be a bank replacement for people,” he said.

The push for the application comes amid the growing regulatory clarity in the United States. Armstrong recently praised the legislative, listing feats like the GENIUS Act as progress in the broader market structure legislation.

Armstrong also mentioned that regarding regulatory clarity, the “freight train has left the station.” “We’ve partnered with banks like JPMorgan and PNC,” Armstrong noted, “but their policy folks sometimes are doing a different playbook. We’d rather that they just operated on a level playing field with every other company.”

This new development is coming amid Coinbase’s integration of decentralized lending protocol Morpho into its application. This new integration allows users to lend USDC directly without the need for a third-party DeFi platform.

Tensions surround yield-bearing stablecoins

The rollout comes amid tensions around yield-bearing stablecoins, which were banned under the GENIUS Act. Several groups, including the Bank Policy Institute, have called for regulators to close the loopholes that allow yield through third-party DeFi integrations.

In a letter sent to Congress, the BPI warned that if the loophole isn’t closed under the new stablecoin laws as spelled out in the GENIUS Act, it may disrupt the flow of credit to American businesses and families, potentially triggering $6.6 trillion in deposit outflows from traditional banks.

In the letter, the BPI also mentioned that stablecoins are different from bank deposits and money market funds because they don’t fund loans or invest in securities. “The result will be greater deposit flight risk, especially in times of stress, which will undermine credit creation throughout the economy. The corresponding reduction in credit supply means higher interest rates, fewer loans, and increased costs for Main Street businesses and households,” the body said.

Meanwhile, Coinbase has dismissed the criticisms, noting that stablecoins do not pose a threat to lending but act as a modern alternative to outdated banking revenue models. “Stablecoins don’t threaten lending — they offer a competitive alternative to banks’ $187 billion annual swipe-fee windfall,” the exchange said.

It also added that stablecoins are payment tools, not savings accounts. “Someone buying stablecoins to pay an overseas supplier isn’t reallocating their savings — they’re choosing a faster, cheaper payment method,” it added.

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