Coinbase CEO Urges Banks to Partner on Stablecoins, Not Compete

Armstrong argued that existing stablecoins like USDC, which Coinbase helped launch in partnership with Circle, already benefit from strong network effects and interoperability. He suggested banks consider partnering with established players like USDC rather than launching competing assets.

“Stablecoins thrive through collaboration, not fragmentation,” Armstrong implied, highlighting the risks of siloed development.

The comments come as regulatory barriers ease under the Trump administration, allowing more traditional financial institutions to enter the crypto space.

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Coinbase also made headlines this quarter with its $2.9 billion acquisition of Deribit, a leading crypto options exchange. While the company missed expectations on revenue and earnings, shares closed up 5% before slipping 2.6% after hours.

Armstrong’s remarks reinforce Coinbase’s vision for a consolidated stablecoin ecosystem powered by public-private partnerships, rather than a patchwork of bank-issued digital dollars.

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