Coinbase dreams of becoming a crypto superapp

A 4% bitcoin cashback on the Coinbase card and, according to the company, up to 80% of the custody of new BTC ETFs passing through its vaults: the push towards a crypto superapp capable of becoming the primary Coinbase account has entered the operational phase, as recently announced by Brian Armstrong on Fox Business.

According to the data collected by our editorial team, based on public company documents and regulatory filings, custody agreements for institutional products have concentrated a significant share of the initial flows towards spot ETFs in the recent period. Industry analysts note that such concentrations depend on agreements with managers and the operational capacity of custodians, elements that we constantly evaluate in our market analyses.

The CEO Brian Armstrong, on TV during an interview on The Claman Countdown, stated that the goal is to merge payments, savings, investments, and custody into a single user experience, reducing friction and costs. In this context, the idea is to make daily use more seamless without sacrificing functionality.

Armstrong’s Move: From Paper to Crypto “Account”

Armstrong describes a platform that combines “bank-like” functions with digital asset services. The most visible piece is the Coinbase card, which offers up to 4% rewards in bitcoin, as highlighted in the interview on Fox Business (programs and percentages may vary based on geographic area and account type). It should be noted that the proposal revolves around a unique user experience, designed to reduce steps and friction.

The strategy aims to concentrate in a single app:

• Payments on-chain and off-chain at lower costs;
• Daily spending with card and wallet;
• Savings and yields on tokenized assets and stablecoins;
• Investments and trading in a single interface;
• Custody regulated for retail and institutional clients.

Custody and payments: the figures that matter

Armstrong noted that traditional networks typically apply swipe fees of 2–3% on merchants; in fact, payments on blockchain can reduce fees and settlement times thanks to:

• Faster settlement: near-instant transfers on major chains;
• Potentially lower costs, especially on layer 2 and optimized networks;
• Integrated Traceability for reconciliation and audit.

Regarding custody, Coinbase emphasizes its role as a custodian for numerous spot Bitcoin ETFs in the United States, claiming to hold more crypto in custody than other operators, a fact cited by Armstrong to highlight the transition from exchange to primary account for the user. That said, the ability to combine security and simplicity will be central to supporting this ambition.

Roadmap towards a “substitute bank”

“We want to be a replacement for the bank for people, their primary financial account,” Armstrong stated. The roadmap includes the integration of custody, payments, and savings products based on crypto infrastructures. In this context, the horizon is a continuous service that combines on-chain and fiat world.

For fiat currency operations and regulated flows, Coinbase collaborates with banking partners such as JPMorgan and PNC, a key element to ensure compliance, liquidity, and service continuity, as confirmed by the interview. Yet, the quality of execution remains crucial for consolidating daily use.

Regulation: the “train” has left the station

Armstrong described the recent legislative momentum as a “bipartisan freight train,” highlighting how the increasing regulatory clarity for stablecoins and the definition of the market structure represent key enablers for the super app. Among the proposals currently under discussion in the US Congress are:

• Stablecoin: the Clarity for Payment Stablecoins Act, proposed to establish federal rules for issuers and reserves;
• Market structure: the FIT21 bill (H.R. 4763), proposed to outline competencies between authorities and definitions of digital assets.

Expected Impact of Regulation

• Less legal uncertainty after years of litigation;
• Greater institutional participation in compliant products;
• Development speed for an integrated and compliant crypto platform.

The obstacles: banks, lobbying, and rewards

Armstrong highlighted banking lobbying as a possible hindrance, as some institutions might seek to limit stablecoin reward programs to protect traditional payment margins. For Coinbase, these rewards are seen as equivalent to airline miles or card points, and not as interest on deposits. However, the regulatory framework will make the difference in the evolution of these schemes.

Regulatory experts emphasize that reward schemes linked to stablecoins may require additional consumer protections and greater transparency regarding issuers and reserves, balancing innovation in payments with safeguards against risks. In this context, clarity and communication will be essential elements.

Competition: who runs with Coinbase

In the competitive landscape, besides operators like Gemini and other global exchanges, new fintech and big tech players are expanding their offerings in wallets, payments, and custody. Coinbase focuses on the advantage derived from trust, the scale of custody solutions, and strong institutional relationships, elements that consolidate its position as an “all-in-one” digital account. It should be noted that the ability to integrate different functions into a single experience remains a differentiating trait.

Bitcoin at $1 million in 2030? The hypothesis, not the prediction

Armstrong has expressed a non-negligible probability that Bitcoin could reach $1,000,000 by 2030, emphasizing that this is his opinion and that such a prospect depends on factors like regulatory clarity, the inflow into spot ETFs, and the potential creation of a strategic reserve in BTC in the United States. That said, it is a scenario conditioned by many variables.

The drivers indicated by the CEO

• Regulatory clarity in the United States;
• Possible strategic reserve USA in BTC;
• Inflows into spot Bitcoin ETFs, with a significant share held in custody by Coinbase (according to internal data reported by the company).

This view is sensitive to rates, global liquidity, macroeconomic cycles, and institutional adoption, while regulatory and technological risks remain material. Indeed, the market trajectory will also depend on the confidence and maturity of the ecosystem.

Base and creator economy: cornerstone of the ecosystem

The Base app, dedicated to creators and users, aims for native monetization and fast crypto payments, positioning itself as an entry tool into the Coinbase ecosystem, aimed at expanding daily use well beyond simple trading. However, ease of use will be crucial to encourage adoption.

Why This Story Matters for Users

• A single app for shopping, saving, investing, and payments;
• Potentially lower fees and faster payments;
• Possible increased protections thanks to clearer regulations and the support of banking partners;
• Risks to evaluate: crypto volatility, regulatory changes, and risks related to cyber-security.

Conclusion

Coinbase’s race towards the crypto superapp marks a transition from being a simple exchange to becoming a financial infrastructure for users and institutions, with a path that will depend on the evolution of regulations, the quality of the products offered, and the ability to execute in synergy with banking partners. In this scenario, the goal of the primary account remains the strategic focal point.

If the regulatory “train” maintains its momentum and the use cases for blockchain payments prove their value, the idea of the crypto-style primary account could transform from vision to market standard. That said, the timing and manner of adoption will depend on the alignment between regulators, businesses, and users.