Key Takeaways
- Major US banks are testing stablecoin, custody and trading pilots with Coinbase, according to CEO Brian Armstrong.
- BlackRock’s Larry Fink now sees “a big, large use case for Bitcoin,” reversing his earlier criticism.
- Fink notes about $4.1 trillion sits in digital wallets and says broader tokenization could unlock those funds.
- Coinbase has also struck individual partnerships with Citi, JPMorgan and PNC as part of its wider push into traditional banking.
Major US banks have begun experimenting with stablecoins, digital-asset custody and crypto trading in collaboration with Coinbase, according to the exchange’s chief executive, Brian Armstrong. Speaking on Wednesday, he said leading lenders were testing a range of crypto pilots with the company, although he did not identify the institutions involved.
According to Bloomberg, Armstrong said the institutions taking part see strategic value in the technology. “The best banks are leaning into this as an opportunity,” he told the audience. “The ones who are fighting it are going to get left behind.”
He appeared alongside BlackRock chief Larry Fink at the New York Times DealBook Summit, where the two executives discussed the push to tokenize traditional assets and the uncertain mood gripping digital markets after months of price swings and stalled momentum.
Fink, whose views on crypto have shifted in recent years, highlighted the scale of capital already circulating in digital wallets. He noted that global holdings amount to about $4.1 trillion and argued that wider tokenization could make those funds easier to deploy. He also acknowledged the dramatic shift from earlier criticism, saying, “I see a big, large use case for Bitcoin,” a stance that contrasts sharply with his 2017 remark describing the token as “an index for money laundering and thieves.”
BlackRock now runs the world’s largest Bitcoin exchange traded fund, underscoring the firm’s changed posture as more established financial groups revisit their approach to digital assets. Executives from JPMorgan, Bank of America and Citigroup have recently signaled fresh interest, while Morgan Stanley has rolled out crypto trading for retail clients on its E*Trade platform.
Fink drew a distinction between Bitcoin and the stablecoin market, calling the former “an asset of fear.” He added, “You own Bitcoin because you’re frightened of your physical security; you own it because you’re frightened of your financial security. The long-term fundamental reason you own it is the debasement of financial assets because of deficits.”
The discussion unfolded as political attitudes and regulatory signals toward crypto appear to be shifting, pushing traditional financial firms to reassess previously delayed plans to build out digital-asset services.
Big Banks Lean on Coinbase to Modernize Payments and Custody
Coinbase has widened its footprint across traditional finance through a series of partnerships with major institutions, including new infrastructure work with Citigroup to support institutional pay-ins, pay-outs and stablecoin settlement, and a deal with PNC Bank that brings crypto trading and custody to PNC clients through Coinbase’s CaaS platform.
The exchange has also advanced a broad collaboration with JPMorgan Chase that links Chase bank accounts directly to Coinbase wallets and allows customers to fund purchases through credit cards or even reward points.
Beyond banking, Coinbase Asset Management has partnered with Apollo Global Management to build stablecoin-backed credit products aimed at institutional lenders.
Taken together, these tie-ups highlight Coinbase’s growing role as a primary conduit between CeFi institutions and the emerging digital-asset economy.
Read More: Georgia Taps Hedera to Explore On-chain Land Registry and Asset Tokenization
