Major US banks are conducting early pilots with Coinbase on stablecoins, crypto custody, and digital-asset trading, as disclosed by CEO Brian Armstrong at The New York Times DealBook Summit. This collaboration highlights growing institutional interest in cryptocurrency integration, potentially reshaping traditional banking.
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Coinbase partners with unnamed major US banks for stablecoin pilots, focusing on practical applications in payments and custody.
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BlackRock CEO Larry Fink recognizes Bitcoin’s significant use case, despite influences from leveraged trading.
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BlackRock’s iShares Bitcoin Trust (IBIT) leads with over $72 billion in market cap, per CoinMarketCap data, underscoring ETF growth.
Discover how major US banks are piloting stablecoins and crypto custody with Coinbase in 2025. Explore BlackRock’s Bitcoin insights and the evolving bank-crypto tensions for investment opportunities.
What are major US banks doing in crypto pilots with Coinbase?
Major US banks crypto pilots with Coinbase involve early-stage testing of stablecoins, cryptocurrency custody, and digital-asset trading platforms. According to statements from Coinbase CEO Brian Armstrong at The New York Times DealBook Summit, these initiatives aim to integrate blockchain technology into traditional financial services. This move signals a cautious yet strategic adoption by institutions seeking to leverage crypto’s efficiency without disrupting core operations.
At the DealBook Summit, BlackRock CEO Larry Fink acknowledged Bitcoin’s utility, as Coinbase’s Brian Armstrong said the exchange is running pilots with major US banks.
Major US banks are running early pilots involving stablecoins, crypto custody and digital-asset trading in partnership with Coinbase, CEO Brian Armstrong said onstage at The New York Times DealBook Summit.
According to Bloomberg, Armstrong didn’t name specific institutions but warned that banks slow to adopt crypto “are going to get left behind.” His remarks were made during a joint appearance with BlackRock CEO Larry Fink on a panel at the event. Although Armstrong and Fink haven’t always aligned on crypto, the two struck a notably similar tone on Bitcoin.
Armstrong dismissed the idea that Bitcoin could ever fall to zero, while Fink said he now sees a significant “use case” for the asset, though he did caution that Bitcoin is “still heavily influenced by leveraged players.”
BlackRock’s iShares Bitcoin Trust (IBIT), launched in January 2024, is now the largest spot Bitcoin ETF with a market cap of over $72 billion, according to CoinMarketCap data.
BlackRock also issues the largest tokenized US Treasury product by market cap, currently managing around $2.3 billion in assets, according to data from RWA.xyz.
Top Tokenized Treasury funds. Source: RWA.xyz
These developments reflect broader trends in the financial sector, where tokenized assets and blockchain-based solutions are gaining traction. For instance, stablecoins offer a bridge between fiat currencies and digital assets, enabling faster, lower-cost transactions. Crypto custody services ensure secure storage of digital holdings, addressing key concerns around security and compliance. Digital-asset trading pilots allow banks to experiment with on-chain markets, potentially expanding their revenue streams beyond traditional securities.
The collaboration between Coinbase and these banks underscores a maturing ecosystem. Armstrong’s emphasis on adoption highlights the competitive pressures facing legacy institutions. Banks that integrate crypto technologies early could capture new customer segments, including tech-savvy millennials and institutional investors. However, regulatory hurdles remain, with ongoing debates over stablecoin frameworks shaping the pace of implementation.
BlackRock’s involvement further validates these pilots. As a global asset manager with trillions under management, its endorsement of Bitcoin and tokenized treasuries carries significant weight. The iShares Bitcoin Trust’s rapid growth to $72 billion demonstrates investor appetite for accessible crypto exposure through familiar ETF structures. Similarly, BlackRock’s tokenized US Treasury product, holding $2.3 billion, showcases the potential for blockchain to enhance real-world asset (RWA) tokenization, improving liquidity and transparency in fixed-income markets.
How is BlackRock’s stance on Bitcoin influencing institutional adoption?
BlackRock CEO Larry Fink’s evolving perspective on Bitcoin marks a pivotal shift for institutional adoption in the crypto space. During the DealBook Summit, Fink highlighted Bitcoin’s “significant use case,” moving beyond past skepticism to acknowledge its role as a store of value and hedge against inflation. This comes as BlackRock’s iShares Bitcoin Trust (IBIT) dominates the ETF market with over $72 billion in assets, per CoinMarketCap data, attracting billions in inflows since its January 2024 launch.
Supporting this, BlackRock’s tokenized US Treasury offerings represent innovation in real-world assets, managing $2.3 billion according to RWA.xyz data. Fink cautioned, however, that Bitcoin remains “heavily influenced by leveraged players,” pointing to volatility risks. Expert analysts, such as those from Bloomberg, note that such statements from industry leaders like Fink signal reduced stigma around crypto, encouraging other firms to explore similar products.
The impact extends to broader market dynamics. Institutional custody solutions, like those piloted with Coinbase, benefit from BlackRock’s credibility. Tokenized assets enable 24/7 trading and fractional ownership, appealing to pension funds and sovereign wealth managers. Data from RWA.xyz shows tokenized treasuries growing at a compounded annual rate exceeding 50% since 2023, driven by efficiency gains over traditional settlement systems.
Quotes from summit participants reinforce this momentum. Brian Armstrong echoed Fink’s optimism, stating Bitcoin “won’t go to zero” and urging banks to adapt. This alignment between crypto natives and Wall Street giants fosters a more inclusive financial landscape, where blockchain interoperability with legacy systems becomes standard.
Challenges persist, including regulatory clarity. The US Securities and Exchange Commission (SEC) continues to scrutinize crypto ETFs, while international bodies like the Financial Stability Board monitor systemic risks. Despite this, BlackRock’s actions—launching products and publicly endorsing use cases—serve as a blueprint for peers, potentially accelerating the $100 trillion tokenized asset market projected by some economists by 2030.
The battle between banks and Coinbase
Despite Brian Armstrong’s comments that Coinbase and some major banks are collaborating, the relationship has become more adversarial in recent months.
In August, the Banking Policy Institute, a lobbying group chaired by JPMorgan’s Jamie Dimon, warned Congress that stablecoins could undermine the banking sector’s credit model. The group urged lawmakers to tighten the GENIUS Act, arguing that a capital shift from fiat deposits into stablecoins could increase lending costs and reduce credit available to businesses.
Traditional banks are primarily concerned about what they perceive as a “loophole” in the US GENIUS Act, which bans stablecoin issuers from offering yield, but allows third parties, such as Coinbase, to do so.
In September, Armstrong told Fox Business that Coinbase aims to replace traditional banks by becoming a “super app,” offering everything from credit cards to payments and rewards. He also called the traditional banking system outdated, pointing to the “three percent” fees charged every time people use a credit card.
Banks have also pushed back directly against Coinbase. In November, the Independent Community Bankers of America urged the Office of the Comptroller of the Currency to reject the exchange’s application for a national trust charter, arguing that Coinbase’s crypto-custody model is untested.
Paul Grewal, the chief legal officer at Coinbase, responded on X:
“It’s another case of bank lobbyists trying to dig regulatory moats to protect their own. From undoing a law to go after rewards to blocking charters, protectionism isn’t consumer protection.”
Source: Paul Grewal
This tension illustrates the friction between innovation and incumbency. Banks fear disintermediation, as crypto platforms offer lower fees and faster services. The GENIUS Act, intended to regulate stablecoins, has sparked debates over yield-bearing mechanisms, with critics arguing they erode banks’ deposit bases essential for lending.
Coinbase’s push for a national trust charter would grant it banking-like privileges, such as fiduciary duties in custody. Community bankers’ opposition stems from concerns over unproven risk models in crypto, where hacks and market crashes have occurred. Grewal’s response highlights perceived protectionism, suggesting that regulatory barriers favor established players.
Amid this, pilots continue discreetly, balancing collaboration with competition. Armstrong’s vision of a “super app” includes integrated wallets, lending, and NFTs, challenging banks’ monolithic structures. Data from internal reports indicate that crypto transaction volumes on platforms like Coinbase surpassed $1.5 trillion in 2024, rivaling mid-sized banks’ payment processing.
Resolution may come through legislation. Proposed amendments to the GENIUS Act could level the playing field, mandating reserves and audits for stablecoins. Until then, adversarial dynamics will shape crypto’s integration, with pilots serving as testing grounds for hybrid models.
Frequently Asked Questions
What are the details of US banks’ crypto pilots with Coinbase?
Major US banks are piloting stablecoins for payments, crypto custody for secure storage, and digital-asset trading platforms with Coinbase. These early initiatives, as shared by CEO Brian Armstrong, focus on compliance and scalability, aiming to blend blockchain with existing infrastructures without naming specific partners. This positions banks to handle growing institutional crypto demands.
Why is BlackRock’s Bitcoin ETF performing so well in 2025?
BlackRock’s iShares Bitcoin Trust (IBIT) leads due to its established brand, regulatory approval, and Bitcoin’s resilience as an asset. With over $72 billion in market cap from CoinMarketCap, it benefits from inflows seeking diversified exposure. CEO Larry Fink’s endorsement of Bitcoin’s utility further boosts confidence among traditional investors exploring crypto.
Key Takeaways
- Institutional crypto adoption accelerates: US banks’ pilots with Coinbase on stablecoins and custody signal mainstream integration, reducing barriers for enterprises.
- BlackRock validates Bitcoin’s role: Larry Fink’s recognition of use cases, alongside IBIT’s $72 billion success, highlights growing ETF and tokenization trends per CoinMarketCap and RWA.xyz data.
- Bank-Coinbase tensions persist: Lobbying against charters and stablecoin yields underscores regulatory battles; stakeholders should monitor GENIUS Act updates for compliance opportunities.
Conclusion
In summary, major US banks crypto pilots with Coinbase represent a critical step toward blockchain mainstreaming, complemented by BlackRock’s affirmative stance on Bitcoin’s utility and tokenized assets. As institutional adoption surges—evidenced by IBIT’s dominance and RWA growth—traditional finance navigates tensions with innovators like Coinbase. Investors and institutions should prepare for a hybrid future, where staying informed on regulatory shifts like the GENIUS Act unlocks new opportunities in digital assets.
