Coinbase Partners With US Banks On Stablecoin, Crypto Pilots
- ByStartupStory | December 4, 2025
Major Institutions Test Infrastructure With Coinbase Amid Regulatory Tailwinds
Coinbase Global Inc. is collaborating with several of America’s largest banks on pilot programs focused on stablecoins, cryptocurrency custody, and digital asset trading, CEO Brian Armstrong revealed at The New York Times DealBook Summit. While declining to name specific partners, Armstrong emphasized that “the best banks are leaning into this as an opportunity,” warning laggards risk obsolescence as blockchain infrastructure matures.
Stablecoins, Custody Lead Institutional Experiments
The pilots explore stablecoin issuance, custody solutions, and trading execution—core infrastructure for banks eyeing tokenized assets and real-time settlements. This aligns with surging institutional interest post-SEC approvals for spot Bitcoin/ETH ETFs and regulatory clarity around stablecoins via the GENIUS Act. Armstrong noted pilots represent “early live testing” of production workflows, signaling transition from experimentation to deployment.
Contextually, banks face competitive pressure: Charles Schwab launched crypto trading for high-net-worth clients, while JPMorgan Chase, Bank of America, Wells Fargo, and Citigroup explore joint stablecoin development. Early Warning Services (Zelle operator, owned by seven major banks) plans international expansion using stablecoins.
Regulatory Convergence Fuels Adoption
Armstrong’s comments coincide with thawing U.S. crypto policy under President Trump’s administration. The GENIUS Act bans stablecoin issuers from offering yield but permits third parties like Coinbase to provide rewards, prompting bank lobbying for tighter restrictions. Despite tensions—Banking Policy Institute (chaired by JPMorgan’s Jamie Dimon) warned of deposit flight—pilots indicate pragmatic collaboration.
BlackRock CEO Larry Fink, sharing the stage, affirmed Bitcoin’s “significant use case” while cautioning leverage risks. BlackRock’s IBIT ETF holds $72 billion AUM, underscoring institutional capital flows.
Coinbase’s Strategic Positioning
Post-FTX revival, Coinbase processes $2 trillion+ annually, positioning as compliant infrastructure provider. Partnerships validate its role bridging traditional finance with crypto, countering bank-native efforts like JPM Coin. Armstrong envisions Coinbase as a “super app” replacing legacy rails with 3% lower fees.
Challenges persist: banks resist stablecoin “loopholes,” community banks oppose Coinbase’s trust charter, and custody risks linger. Yet pilots signal thawing relations, with Coinbase acquiring BVNK ($2B) and Mastercard eyeing Zerohash ($2B).
Broader Implications For Crypto Infrastructure
Collaborations accelerate stablecoin mainstreaming—$200B+ market cap—for cross-border payments (Western Union/FIUSD), tokenized treasuries (BlackRock $2.3B), and DeFi yields. European banks (ING, UniCredit) launch euro-stablecoins, while U.S. pilots test interoperability.
As infrastructure matures, expect accelerated bank adoption: custody (Fidelity Digital), trading (Schwab), issuance (Fiserv FIUSD). Coinbase’s bank partnerships cement its gateway role, bridging $100T+ traditional markets with blockchain efficiency.
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