Coinbase compares itself to the largest banks in the U.S.
Coinbase's achievements
Cryptocurrency exchange Coinbase manages over $420 billion in assets, making it larger than the 21st biggest bank in the US. This was revealed by Brian Armstrong, CEO and co-founder of Coinbase, in a post on his X (formerly Twitter) page.
He noted that Coinbase currently ranks third among centralized cryptocurrency exchanges (CEX) by trading volume, holding $420 billion in digital assets on behalf of its users.
"If you think of Coinbase as a bank, we manage $420 billion in assets, which makes us the 21st largest bank in the US by total assets, and this figure continues to grow," Armstrong emphasized.
Additionally, he pointed out that if Coinbase were classified as a brokerage platform, it would rank as the 8th largest brokerage firm in the US by assets under management (AUM).
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The future of crypto platforms
According to Armstrong, advanced cryptocurrency platforms could eventually merge various financial services into a single neobank.
"As crypto evolves, the lines between banks, brokers, and payment services are blurring. In the updated financial system, users will have a single primary account that serves all these functions," he explained.
Armstrong also expressed confidence that, over time, a significant portion of global GDP will operate on more efficient crypto platforms.
"We will have sound money, lower transaction fees, and greater economic freedom for everyone."
Which bank Is Coinbase comparing itself to?
Coinbase’s total asset volume is nearly three times higher than the $112.9 billion managed by New York Community Bancorp (NYCB), which is the 21st largest bank in the US. Notably, NYCB posted a $260 million loss in Q4 2023, partly due to its acquisition of the collapsed Signature Bank, which was known for its support of the cryptocurrency industry.
Meanwhile, Coinbase reported a net profit of $273 million, marking its first profitable quarter since late 2021.
At the same time, Coinbase users are facing significant losses due to ongoing security issues on the exchange.
