Coinbase Aims to Be Your Crypto Bank: Super App Vision
Coinbase's Super App Ambitions: Replacing Traditional Banks
Coinbase CEO Brian Armstrong has publicly stated the company's long-term vision: to evolve Coinbase into a full-service crypto "super app," effectively replacing traditional banking services.
In a recent interview, Armstrong detailed plans to offer a complete range of financial services, from payments to credit cards with rewards, all leveraging cryptocurrency infrastructure. "Yes, we do want to become a super app and provide all types of financial services,” Armstrong said. “We want to become people’s primary financial account and I think that crypto has a right to do that.”
Armstrong critiqued the existing banking system's inefficiencies and high transaction fees. He questioned the rationale behind standard credit card fees, stating, “It kind of boggles my mind. Like, why are we paying two to three percent every time we swipe our credit card? It’s just some bits of data flowing over the internet. It should be free or close to it.”
4% Bitcoin Rewards Card on the Horizon
A key component of Coinbase's strategy is offering more attractive services, including a credit card providing 4% rewards in Bitcoin (BTC). Armstrong emphasized, “Ultimately, we want to be a bank replacement for people.”
This push towards a super app coincides with increasing regulatory clarity in the United States. Armstrong acknowledged recent legislative progress, such as the GENIUS Act, and broader market structure legislation. "The freight train has left the station" in terms of regulatory clarity, he said.
Armstrong also addressed the company's relationships with traditional financial institutions. “We’ve partnered with banks like JPMorgan and PNC,” Armstrong noted, “but their policy folks sometimes are doing a different playbook. We’d rather that they just operated on a level playing field with every other company.”
DeFi Integration for USDC Yields
Coinbase has integrated the Morpho decentralized lending protocol, allowing users to lend USDC directly through the app and potentially earn yields as high as 10.8%. This move bypasses the need for third-party DeFi platforms.
This rollout occurs amidst discussions surrounding yield-bearing stablecoins, following restrictions introduced by the GENIUS Act. Banking groups have advocated for closing loopholes that allow yield generation through DeFi integrations. Coinbase has countered these criticisms, asserting that stablecoins are not a threat to lending but a modern alternative to traditional banking models.
As the crypto landscape continues to evolve, ensuring the security of digital assets is paramount. Platforms like Codeum provide essential services, such as smart contract audits and KYC solutions, helping to create a safer and more trustworthy environment for both users and developers.