Coinbase becomes a banking giant, overtaking many US banks

The crypto exchange Coinbase is asserting itself as a major force in the American financial sector, with over $420 billion in assets under management. This rise comes as the company is engaged in a fierce battle against banking restrictions imposed on the crypto sector.

Coinbase now surpasses many American banks

Coinbase, listed on Nasdaq under the symbol COIN, has crossed a significant milestone in its development. CEO Brian Armstrong revealed on February 6 that the company managed around $420 billion in client assets, making it the 21st largest bank in the United States in terms of total assets. This position is particularly remarkable as the company would also rank as the 8th largest broker in the country in terms of assets under management.

“If you consider Coinbase as a bank, we now hold about $0.42 trillion in assets for our clients, which would make us the 21st largest bank in the United States by total assets. And this number continues to grow”, said Armstrong on his X account (formerly Twitter).

This growth reflects a profound transformation in the financial sector, where traditional boundaries between banking services, investment, and payments are gradually blurring. Coinbase users now rely on the platform for a full range of financial services, from investing to lending to daily payments.

The transaction volume in stablecoins reached nearly $30 trillion last year, demonstrating the growing adoption of crypto in everyday financial transactions. This evolution marks a crucial milestone in Armstrong’s vision of a unified financial system based on blockchain.

A showdown with regulators for the future of the sector

Alongside this expansion, Coinbase is waging a crucial legal and regulatory battle. On February 4, 2025, the company sent a letter to key American banking regulators (the Fed, the FDIC, and the OCC) demanding an end to the restrictions limiting access for crypto companies to traditional banking services.

Faryar Shirzad, chief public affairs officer, condemns “one-sided and unjustified” obstacles that hinder the development of the sector.

This offensive comes at a strategic moment, as Congress holds crucial hearings on the phenomenon of “debanking” of crypto companies. Paul Grewal, Coinbase’s legal chief, is set to defend the company’s position before the Senate and the House of Representatives.

Armstrong’s vision for the future is clear: a modernized financial system where a single crypto account can meet all users’ financial needs. “A higher percentage of global GDP will flow on more efficient crypto rails,” he predicts, promising “sound money, less burdensome transactions, and greater economic freedom for all.”