Coinbase CEO Brian Armstrong is aiming to transform the company into a full-service crypto "super app," with the ambitious goal of replacing traditional banks. Armstrong envisions Coinbase becoming people's primary financial account, offering a comprehensive suite of financial services powered by crypto.
Armstrong has criticized the existing banking system for being outdated and inefficient, particularly highlighting the high transaction fees associated with credit card usage. He believes that processing digital data should be nearly free, contrasting this with the current 2-3% fees levied on credit card transactions. Coinbase intends to leverage crypto rails to provide faster and cheaper payments.
The "super app" strategy involves integrating various financial services, including payments, credit cards, and rewards, all within the Coinbase platform. A key component of this vision is a credit card offering 4% Bitcoin rewards. By offering better services across the board, Coinbase aims to become a viable alternative to traditional banks.
Coinbase is actively expanding its ecosystem to support this super-app vision. Base, Coinbase's layer-2 network, is exploring the possibility of launching a native token to boost decentralization and expand opportunities for builders and creators. Furthermore, Base is developing an open-source bridge to Solana, enabling users to move assets between the two chains and providing developers access to a broader liquidity pool. This bridge will handle ERC-20 and SPL tokens, allowing users to deposit SOL into Base apps, import Solana tokens, and export Base assets to Solana.
To enhance its platform, Coinbase is introducing new investment products, including a Request for Quote (RFQ) system designed to increase liquidity and improve the efficiency of larger trades. This feature is tailored for institutional traders and professional investors, enabling them to execute large transactions with greater ease. Coinbase International Exchange is also committed to making significant strides in market liquidity. A revamped quoting program will empower market makers to deepen liquidity pools, creating a more robust and efficient marketplace.
Armstrong's vision aligns with Coinbase's broader mission to create an open financial system for the world. This involves increasing economic freedom by making financial services more accessible, efficient, and innovative. Coinbase aims to achieve this by providing easy-to-use on/off ramps for digital currency, expanding its services globally, and fostering the growth of the crypto ecosystem.
Looking ahead, Coinbase plans to list 50-80 new tokens in the first half of the year. By developing faster listing methodologies, Coinbase International Exchange aims to provide more day-1 listings and access to emerging opportunities, further strengthening its market leadership. The anticipated influx of new cryptocurrencies could significantly impact several coins currently absent from Coinbase. Cryptos like Tron (TRX), BNB, and Toncoin (TON) have made notable gains in the past year, and a Coinbase listing could further boost their market presence.
Coinbase's pursuit of becoming a crypto super app comes amid growing regulatory clarity in the U.S. Armstrong has expressed optimism about recent legislative wins and the progress of broader market structure legislation. Coinbase has also partnered with traditional banks like JPMorgan and PNC, although Armstrong has noted some discrepancies in their approach to crypto policy.
