US Banks Quietly Test Crypto With Coinbase

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US Banks Quietly Test Crypto With Coinbase, Says CEO Brian Armstrong

Written by Aaron S.,

Editor-In-Chief

Last Updated: December 04, 2025

Key Takeaways

Major US banks are testing stablecoins, crypto trading, and asset storage through early programs with Coinbase;
Coinbase CEO Brian Armstrong revealed the trials, but warned banks that ignore crypto risk will be left behind;
Despite some cooperation, tensions are rising as banking groups challenge Coinbase’s crypto-custody and charter plans.

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US Banks Quietly Test Crypto With Coinbase, Says CEO Brian Armstrong

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Several large US banks are quietly experimenting with stablecoins, crypto trading, and digital-asset storage through early programs run with Coinbase $2.16B .

Coinbase’s CEO, Brian Armstrong, shared this information during a speech at The New York Times DealBook Summit.

Bloomberg reported that Armstrong did not reveal which banks are involved but warned that institutions that ignore crypto "are going to get left behind".

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He appeared alongside BlackRock CEO Larry Fink, and both leaders expressed similar views on Bitcoin.

Armstrong said the idea of Bitcoin BTC $93,669.21 losing all value was unrealistic, while Fink noted he now sees a clear “use case” for it, though he added that its price is "still heavily influenced by leveraged players".

Even as cooperation exists, tension between Coinbase and traditional banks has grown.

In November, the Independent Community Bankers of America asked the Office of the Comptroller of the Currency to deny Coinbase a national trust charter. The agency stated that its crypto-custody system has not been proven.

Paul Grewal, Coinbase’s chief legal officer, responded on X:

It’s another case of bank lobbyists trying to dig regulatory moats to protect their own. From undoing a law to go after rewards to blocking charters, protectionism isn’t consumer protection.

Recently, Coinbase rejected several US banking groups' decisions to ban stablecoin payments. What did Coinbase's policy chief, Faryar Shirzad, say? Read the full story.