Brian Armstrong's Warning: The 'Future Crisis' of Banks Rejecting Stablecoin Adoption

Coinbase CEO Brian Armstrong has sent a clear signal to major U.S. financial institutions. His warning is that banks that do not embrace stablecoins and cryptocurrency technologies will inevitably lose their competitive edge in the rapidly evolving digital finance landscape.

Coinbase and the Quiet Innovation with U.S. Banks: Expansion of Pilot Programs

Speaking alongside BlackRock CEO Larry Fink at the New York Times DealBook Summit, Armstrong mentioned the ongoing stablecoin pilot programs conducted by major U.S. banks. Although he did not disclose specific institutions, his message was clear.

“Top-tier banks are actively seizing this opportunity. Conversely, those resisting it will fall behind in the market.”

Despite ongoing broad regulatory scrutiny of cryptocurrencies, mainstream financial institutions are quietly but gradually adopting digital asset infrastructure. This indicates that the convergence of traditional finance and blockchain technology has already entered a visible stage.

Explosive Growth of the Stablecoin Market: Reaching $1.2 Trillion by 2028

Stablecoins, digital tokens backed by cash or assets equivalent to cash, have become a top priority for banks promoting tokenized finance. Coinbase sees significant opportunities here.

The market size is projected to grow to $1.2 trillion by 2028, with some analyses suggesting it could reach $4 trillion under bullish scenarios by 2030. Citibank, which has announced plans to collaborate with Coinbase on stablecoin payment solutions, clearly recognizes this growth potential.

“There are thousands of growth pathways across different sectors,” Armstrong assessed.

Re-evaluating Bitcoin: From Past Rejection to Current Hedge Asset

Larry Fink’s shift from outright rejection of Bitcoin exemplifies a broader change in industry perception. Today, Bitcoin is no longer viewed solely as a speculative asset but as a hedge in uncertain times.

“When physical safety is a concern and financial security is at risk, holding Bitcoin makes sense,” Fink explained.

Despite recent sharp declines in Bitcoin’s price (currently $77.79K), Fink still stated there are “large and important use cases,” and Armstrong agreed, emphasizing that the possibility of Bitcoin dropping to zero is “absolutely not” a reality.

CLARITY Legislation: Market Normalization Through Regulatory Clarity

Armstrong strongly urged Washington authorities to establish clearer rules. He especially hopes the U.S. Senate will expedite voting on the CLARITY Act.

The CLARITY Act will define the legal status and responsibilities of cryptocurrency exchanges, token issuers, and other digital asset entities. Such regulatory clarity is expected to provide a foundation for financial institutions to enter the crypto sector with greater confidence.

“When legal uncertainties are removed, more banks will be able to adopt this technology,” Armstrong’s statement highlights how policy and market participation are closely intertwined.

Outlook: A Turning Point for Cryptocurrency Adoption

Brian Armstrong’s remarks go beyond mere industry observation. They clarify the crossroads facing the entire financial industry. Banks that embrace stablecoins and digital asset technologies will seize future growth opportunities, while those resisting will face weakening competitiveness.

As the boundaries between traditional finance and the cryptocurrency market blur, the passage of regulatory policies like the CLARITY Act will likely be a key factor in determining the industry’s next phase.