Last updated:
Author
Ruholamin Haqshanas
Ruholamin Haqshanas
Share
Why Trust Cryptonews
Ad Disclosure
We believe in full transparency with our readers. Some of our content includes affiliate links, and we may earn a commission through these partnerships. Read more
Coinbase, one of the world’s largest centralized cryptocurrency exchanges (CEX), now holds over $420 billion in digital assets on behalf of its users, surpassing the 21st largest bank in the United States in terms of assets under management (AUM).
The milestone underscores the rapid growth of the cryptocurrency industry and its increasing influence in global finance.
According to Coinbase co-founder and CEO Brian Armstrong, the exchange’s AUM would position it as the 21st largest U.S. bank if it were classified as a traditional financial institution.
Coinbase Would Rank as 8th Largest Brokerage by AUM if Classified as a Brokerage Firm
Armstrong also said that if Coinbase were categorized as a brokerage firm, it would rank as the 8th largest brokerage by AUM.
“If you think of Coinbase like a bank, we now hold about $0.42T in assets for our customers, which would make us the 21st largest bank in the US by total assets, and growing,” he wrote.
Coinbase’s $420 billion in AUM is over three times larger than the $112.9 billion managed by New York Community Bancorp (NYCB), which holds the 21st spot among U.S. banks.
NYCB recently reported a $260 million loss in Q4 2023 following its acquisition of the collapsed, crypto-friendly Signature Bank.
In contrast, Coinbase reported a $273 million net profit for the same quarter, marking its first positive earnings report since Q4 2021, as detailed in the company’s shareholder letter.
Armstrong believes that cryptocurrency platforms will increasingly integrate traditional financial services, leading to consolidated “neobank” models in the future.
He envisions a financial system where users will manage all their banking, brokerage, and crypto-related activities through a single digital account.
“In the updated financial system, you will have a single primary financial account which serves all these functions. A greater percentage of global GDP will run on more efficient crypto rails over time,” Armstrong stated.
He also emphasized that crypto adoption would bring “sound money, lower friction transactions, and greater economic freedom for all.”
Challenges to Mainstream Crypto Adoption
Despite these advancements, several barriers still hinder mainstream adoption, according to Coinbase’s Senior Director of Engineering, Chintan Turakhia.
Speaking at EthCC, Turakhia stressed that to onboard the next billion users, the industry must eliminate key friction points.
Among the major obstacles are complex wallet setups, high transaction fees, and the requirement to buy blockchain-native tokens before transacting on networks.
Simplifying these processes, he argued, will be critical in making crypto more accessible to the masses.
Last week, Coinbase CEO Brian Armstrong said U.S. President Donald Trump’s crypto agenda has become a central topic of discussion across the crypto industry, financial markets, and the tech world.
Reflecting on his recent time at the World Economic Forum (WEF) in Davos, Armstrong revealed that conversations with major market leaders were dominated by Trump’s plans for digital assets.
More recently, a U.S. federal judge ruled against Coinbase’s argument that it does not qualify as a “statutory seller” under federal law, clearing the way for an investor lawsuit to move forward in New York.
