Coinbase CEO Armstrong Says Banks That Don't Adapt to Stablecoins Will Be 'Left Behind'

Coinbase (COIN) is partnering with some of the largest banks in the U.S. on pilot programs involving stablecoins, crypto custody and trading, CEO Brian Armstrong said Wednesday at the New York Times DealBook Summit.

“The best banks are leaning into this as an opportunity,” Armstrong said during a discussion alongside BlackRock CEO Larry Fink. He did not name specific banks. “The ones who are fighting it are going to get left behind.”

The announcement suggests a quiet but growing embrace of crypto infrastructure by mainstream financial institutions, even as the broader market remains under tight regulatory scrutiny. Stablecoins — digital tokens backed by cash or cash-like assets — have become a central focus for banks exploring tokenized finance.

Coinbase believes the stablecoin market will balloon to a $1.2 trillion market by 2028 as it sees potential for thousands of growth paths for the sector. Many U.S. banks are already deep into innovating using stablecoins. Citi, which has previously announced plans to collaborate with Coinbase on stablecoin payment solutions, projects the industry to reach $4 trillion by 2030 in a bull case.

The joint appearance also covered broader themes. Fink, who once dismissed bitcoin BTC$89,252.30, now sees it as a hedge in uncertain times. “You own bitcoin because you’re frightened of your physical security, uou own it because you’re frightened of your financial security,” he said. For Fink, bitcoin is less about speculation and more about long-term protection from currency debasement and ballooning debt.

While bitcoin has seen a steep drawdown over the past few months, Fink said he continues to sees a "big, large use case." Armstrong echoed that view, saying that there's "no chance" that the asset will go to zero.

Armstrong also pressed for clearer rules from Washington. He said he hopes the U.S. Senate will soon vote on a bill known as the CLARITY Act, which would establish legal definitions and responsibilities for crypto exchanges, token issuers and other players in the digital asset space.

UPDATE (Dec 3, 20:07 UTC): Adds additional comments from Armstrong and Fink and a paragraph about the stablecoin market.