- Background to Coinbase's Consideration of Entering US Banking Sector
With the recent easing of regulations in the cryptocurrency market and active discussions on integration with traditional finance, Coinbase, the largest cryptocurrency exchange in the US, is actively considering entering the banking sector in the US. Coinbase CEO Brian Armstrong has stated, "Even considering the current customer funds, it would be the 21st largest bank in the US," signaling a major shift that narrows the gap between finance and banking. This movement is likely to create new opportunities in the cryptocurrency and financial investment markets.
- Expected Effects and Challenges of Obtaining a Banking License
Obtaining a banking license would allow Coinbase to perform traditional banking operations such as lending, accepting deposits, and providing deposit protection. The safety of customer funds would be further enhanced by the protection of the Federal Reserve and the benefits of deposit insurance. However, strict screening by financial authorities and high regulatory compliance costs remain significant challenges. In fact, Anchorage Digital is currently the only cryptocurrency-specialized company with a banking license in the US, and competition in financial sectors such as investment is expected to intensify.
- Moves by Other Cryptocurrency Companies and Traditional Financial Institutions
In addition to Coinbase, several companies, including Circle, the issuer of stablecoin USDC, and cryptocurrency custodian BitGo, are also seeking bank approval in the US. These changes are accelerating the convergence of the cryptocurrency and financial industries, and traditional financial institutions are also actively considering the introduction of cryptocurrency investment and payment systems. Bank of America's CEO recently mentioning the need to launch a stablecoin and introduce cryptocurrency payments is in the same context.
Along with changes in the economic situation, key keywords such as banking, cryptocurrency, finance, and investment are intertwined, creating new market opportunities. It is worth paying attention to whether cryptocurrency companies like Coinbase will be able to exert significant competitiveness in the traditional financial market depending on whether they obtain a banking license in the US.
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