- Coinbase confirmed it’s considering a U.S. banking license, joining other crypto firms like Circle and BitGo in exploring traditional finance.
- This shift could lead to expanded services, increased customer protection, and closer integration between crypto and traditional banking systems.
Coinbase Confirms It’s Exploring a Major Move Into Banking
Coinbase has confirmed it is “actively considering” applying for a U.S. banking license, signaling the growing convergence between crypto and traditional finance. This revelation, shared with crypto.news on April 22, marks a potential game-changer for the exchange and the broader digital asset space.
A Coinbase spokesperson stated, “This is something Coinbase is actively considering but has not made any formal decisions yet.” The move aligns with previous comments from CEO Brian Armstrong, who pointed out that based on the volume of user funds it manages, Coinbase would rank as the 21st largest bank in the United States.
Crypto Firms Racing Toward Traditional Banking
Coinbase isn’t alone in this strategic pivot. Other major players like Circle, the issuer of USDC, and BitGo, a leading custody provider, are also reported to be exploring full banking licenses, according to an April 21 report by The Wall Street Journal. These licenses would empower crypto firms to offer services like lending, deposit-taking, and enhanced customer protections—much like any traditional bank.
Gaining a banking license would also allow access to Federal Reserve protections and deposit insurance, making digital asset firms more competitive and trustworthy in the eyes of traditional finance users.
A Crypto-Friendly Climate Under Trump?
This surge in banking ambitions comes as the U.S. regulatory environment appears to be thawing. With President Donald Trump back in office, crypto industry insiders are noticing a more favorable tone from regulatory agencies. The SEC’s softened stance, thanks to newly appointed officials, is making it easier for firms to consider long-term investments in compliance-heavy ventures like banking.
Lawmakers are also reviewing two key legislative efforts—the GENESIS Act and the STABLE Act—which aim to provide the clarity the crypto sector has long sought. If passed, these bills could offer a stable foundation for crypto-banking hybrids to thrive.
The Road Ahead: High Stakes and High Hopes
While the only crypto-native firm to currently hold a banking license is Anchorage Digital, which reportedly spent tens of millions on compliance, Coinbase’s entry into the sector could open the floodgates. If successful, it would mark a historic turning point—not just for Coinbase, but for the future of finance itself.
