Coinbase and Robinhood face outages after AWS data center failure
Major trading platforms Coinbase and Robinhood suffered widespread disruptions on Monday after an Amazon Web Services (AWS) data center outage in Northern Virginia caused increased error rates and latency across multiple services.
Coinbase, the world’s third-largest crypto exchange by trading volume, saw its mobile app crash, leaving users unable to log in, place trades, or withdraw funds, reports Cointelegraph.
The firm confirmed that its Base app also experienced downtime. AWS later announced that global services depending on its US-EAST-1 region had mostly recovered after roughly three hours.
“We’re seeing early signs of recovery, with some users being able to access and use Coinbase services now,” the exchange said on X, adding that its team was “working on this issue with top priority.” Robinhood users also reported execution delays and API connectivity issues during the outage.
The disruption sparked frustration online, as one trader wrote, “Amazon down, Robinhood down, Reddit down, McDonald’s down, Fortnite down,” underscoring how deeply AWS underpins global digital infrastructure.
Recurring outages expose centralized infrastructure risks
The latest crash follows a similar AWS outage in April 2025, which disrupted at least eight major crypto exchanges, including Binance, KuCoin, and MEXC, due to “connectivity issues.” The recurrence highlights growing concern about centralized cloud concentration in financial services, where a single data center malfunction can freeze billions in trading activity.
AWS underpins the infrastructure for numerous exchanges, including Binance, Coinbase, BitMEX, Huobi, Crypto.com, and Kraken, chosen for its low latency and high scalability in processing trading orders. Yet the growing reliance on one provider has reignited calls for decentralized cloud alternatives capable of mitigating single points of failure.
Push for decentralized Web3 cloud solutions gains traction
In the wake of recent outages, Layer-1 blockchain Vanar Chain has been spearheading blockchain-based alternatives to AWS-style systems. Following April’s outage, Vanar launched Neutron, an AI-native blockchain layer offering data compression up to 500:1 and full on-chain storage without reliance on intermediaries.
“This unlocks entirely new possibilities—from storing files fully on-chain to verifying the information inside them,” said Vanar CEO Jawad Ashraf.
Other decentralized infrastructure projects are also seeing renewed interest. The Internet Computer Protocol (ICP) enables decentralized hosting and computation across global nodes, while Filecoin, Akash Network, and Render Network provide blockchain-based data storage, compute power, and GPU processing services respectively.
The AWS outage serves as a fresh reminder that the next evolution of digital finance infrastructure may depend on distributed networks, where decentralization and redundancy could help ensure resilience against future failures.
Recently we wrote that a new Coinbase Institutional survey shows that 67% of institutional investors maintain a positive outlook on Bitcoin heading into 2026, despite recent market turbulence.
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