Brian Armstrong, the CEO of Coinbase, has expressed that the company’s most ambitious goal is to supplant traditional banks by transforming Coinbase into a comprehensive crypto “super app.”
In a recent interview with Fox Business, Armstrong elaborated on the company’s plans to provide a complete array of financial services, ranging from payments to credit cards and rewards, all utilizing crypto infrastructure.
“Indeed, we aspire to become a super app and offer various financial services,” Armstrong stated. “We aim to be people’s primary financial account, and I believe crypto is well-positioned to achieve that.”
Armstrong criticized the traditional banking system for being outdated and inefficient, highlighting excessive transaction fees as a significant issue. “It baffles me. Why do we pay two to three percent every time we swipe a credit card?” he questioned. “It’s merely bits of data moving across the internet. It should be free or nearly so.”
Related: NBA star Kevin Durant retrieves Coinbase account after nearly 10 years
Coinbase aims for 4% Bitcoin rewards card
The CEO of Coinbase indicated that the long-term ambition includes enhancing services across the board, such as a credit card featuring 4% Bitcoin (BTC) rewards. “Ultimately, we seek to serve as a bank alternative for consumers,” he remarked.
The initiative to create a super app coincides with increasing regulatory clarity in the United States. Armstrong commended recent legislative accomplishments like the GENIUS Act and the advancement of broader market structure initiatives in the Senate, remarking that the “freight train has departed” concerning regulatory clarity.
“We have collaborated with banks like JPMorgan and PNC,” Armstrong noted, “but their policy teams sometimes seem to follow a different playbook. We prefer that they adhere to a level playing field with all other companies.”
Related: Coinbase submits legal motion regarding Gensler, SEC missing text messages
Coinbase leverages DeFi to enhance USDC yields
As reported by Cointelegraph, Coinbase has incorporated the decentralized lending protocol Morpho into its app, enabling users to lend USDC (USDC) directly without relying on third-party DeFi platforms. This development offers users the opportunity to earn yields potentially as high as 10.8%.
This rollout occurs amidst tensions concerning yield-generating stablecoins, which are prohibited under the GENIUS Act. Bank-affiliated groups like the Bank Policy Institute have urged regulators to address perceived loopholes that permit yield through third-party DeFi integrations.
Coinbase has dismissed these concerns, asserting that stablecoins are not a threat to lending but a contemporary alternative to antiquated banking revenue models.
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