Leading banking institutions in traditional finance (TradFi) are reportedly partnering with US-based cryptocurrency exchange Coinbase (COIN) to explore pilots related to stablecoins, custody solutions, and trading options.
Coinbase CEO Brian Armstrong announced this during his appearance at the New York Times Dealbook Summit on Wednesday, as reported by Bloomberg.
Coinbase CEO Cautions Banks On Crypto Resistance
Armstrong emphasized that leading financial institutions recognize this as an opportunity for growth. “The best banks are leaning into this as an opportunity,” he stated, although he refrained from naming any specific banks involved in these initiatives.
During his speech, the executive also voiced his concerns about institutions that resist participating in the digital asset ecosystem. He asserted that those who oppose it will be left behind.
This sentiment aligns with remarks Armstrong made six months ago, where he predicted that eventually, every major bank would integrate cryptocurrency into their operations.
He views this technology as a means to modernize the financial system, stating, “We can power a variety of things for them.” He noted that some banks are looking for custodial solutions, while others are interested in developing their own stablecoins.
COIN Shares Surge 5%
Adding weight to this discussion, Larry Fink, CEO of the world’s largest asset manager and crypto exchange-traded fund (ETF) issuer BlackRock, participated in the event alongside Armstrong.
Fink, who previously voiced skepticism about cryptocurrencies, described Bitcoin (BTC) as a safe haven asset despite the cryptocurrency’s crash toward $83,000 on Monday.
“You own Bitcoin because you’re frightened of your physical security. You own it because you’re frightened of your financial security,” he remarked.
On the financial side, Coinbase’s stock performance reflects the positive sentiment in the cryptocurrency market amid recovering prices. Trading under the ticker COIN on the Nasdaq, Coinbase’s shares closed Wednesday at nearly $277, marking a 5% increase.
This uplift coincides with broader gains in the cryptocurrency sector, notably led by the recent price performance of Ethereum (ETH), followed by Bitcoin, XRP, Binance Coin (BNB), and other notable tokens such as Solana (SOL), all of which have shown significant recoveries this week after a challenging month.
Featured image from Shutterstock, chart from TradingView.com
