Coinbase vs. Prime Trust: The Fight for Customer Funds Just Got Real
Coinbase (Nasdaq: COIN), the largest publicly traded crypto exchange in the US, has been quietly getting bigger and bigger and is now larger than many traditional banks in terms of customer assets.
CEO Brian Armstrong posted on X Feb 6 that Coinbase has $420 billion in assets and said:
He also compared Coinbase to major brokerages saying: “If you think of us more like a brokerage, we’d be the 8th largest brokerage today by AUM.” Armstrong noted that the company’s role in payments is harder to quantify saying: “If you think of us like a payments company…TBH I’m not sure where we rank on that list. There are many ways to measure it, but there were about $30T in total stablecoin payments last year (not all of those were goods and services though).”
Armstrong pointed out that crypto is making traditional financial categories less distinct. “The point is, with crypto the line between these categories is blurring. There are many legacy reasons these are separate in the traditional financial system – and not all of them are good reasons,” he said.
Crypto Adoption is Redefining Traditional Banking
He said that many people use Coinbase to invest but also to spend, get a loan, etc. His comments suggest that digital assets are making the financial system more unified where traditional banking distinctions become obsolete.
Looking ahead Armstrong said that financial services will consolidate into one crypto powered account that can do everything. His vision is in line with Coinbase’s strategy to be the leader in the new financial system competing with banks, brokerages and payment companies as digital first financial institutions rise.
The Future of Crypto-Integrated Financial Services
Coinbase’s growth means crypto based financial services are in demand and traditional banking models are being dismantled. Here are the key points:
- Massive Asset Growth: Coinbase now manages over $420 billion in assets, outpacing many traditional banks.
- Broad Financial Services: Users can invest, transact, and borrow within a single ecosystem.
- Blurred Industry Lines: Crypto is dismantling traditional distinctions between banking, brokerage, and payments.
- Stablecoin Adoption: $30 trillion in stablecoin payments processed in the past year highlights increasing crypto usage for transactions.
As financial institutions adapt to the digital economy, Coinbase’s growth signals a larger industry shift toward crypto-integrated banking, further challenging legacy financial structures.
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