Coinbase CEO Sets Future Goal for Crypto to Replace Banks

Brian Armstrong, the CEO of Coinbase, has outlined an ambitious path forward. His aim is to position Coinbase as a “primary financial account,” one that could eventually provide the same services people now rely on banks for. 

The company has already expanded into areas like payments, credit cards, and lending. At present, users can earn up to 10.8% APY by lending USDC through the platform, which makes Coinbase an attractive option for anyone holding stablecoins.

Coinbase’s Banking Vision

The concept is straightforward. Bring together a full range of financial services inside one digital ecosystem. A user could buy or sell crypto, use it for payments, or lend it out, all without leaving Coinbase. Armstrong has criticized banks for charging high fees and has argued that digital transactions “should be free or close to it.”

From a convenience standpoint, this approach is appealing. The platform now combines trading, payments, and lending in one place. That means users can earn yields like 10.8% APY on USDC without navigating decentralized finance protocols themselves.

The Trade-Off: Control of the Keys

Convenience, however, comes at a cost. Coinbase is a centralized exchange. When users keep USDC on the platform or lend it through Coinbase, they give up control of their private keys. In effect, the company holds the keys and decides how access, security, and transactions are managed.

That setup makes Coinbase function more like a traditional bank in digital form. Users benefit from ease of use and higher returns than most banks offer, but they surrender direct ownership of their funds. Past events in the crypto industry show why this matters.

Centralized services have been hacked, forced to freeze accounts, or pressured by regulators, leaving customers at risk. On top of this, regular KYC checks are required to be passed just to maintain access to your account.

Why Self-Custody Remains Essential

For those who want to stay aligned with the original vision of cryptocurrency, self-custody remains the better choice. A personal wallet ensures that users hold their own keys and keep full control of their assets. With self-custody, they can still participate in DeFi, earn rewards, and move funds freely without relying on a third party.

This path does require greater responsibility, since the user is accountable for securing their wallet. But it also provides security against the risks of centralized custody. In a future where Coinbase may become the “bank of crypto,” the ability to hold your own keys matters more than ever.

Coinbase’s plan to replace banks is bold, and its lending products stand out with attractive yields. Still, there is a clear trade-off. Convenience means centralization, while self-custody protects true ownership. For anyone serious about control of their crypto, the latter remains the safer long-term option.

Best Self-Custody Wallets

As the crypto industry matures, holding your assets in a self-custodial wallet has never been more important. Centralized exchanges, including Coinbase, can change policies overnight or suffer hacks, but with self-custody, your crypto stays under your control. 

Therefore, for investors seeking exposure to crypto assets without sacrificing control and security, non-custodial wallets like Best Wallet represent a smarter way forward. Unlike exchanges where withdrawal freezes remain possible and users may contend with both geographic restrictions and invasive KYC requirements, Best Wallet’s self-custodial posture ensures that investors remain in charge of their privacy and wealth. 

It is built with security at its core to deliver real protection in a market full of risks. In fact, it is one of the first, if not the first, to integrate Fireblocks’ MPC-CMP technology, an advanced security method that splits private keys into multiple encrypted parts across separate parties, eliminating any single point of failure. To guard against unauthorized access, Best Wallet also incorporates modern features like biometric login and optional two-factor authentication. 

Beyond its non-custodial, security-first design, Best Wallet also offers a wide range of features – from staking aggregator, iGaming perks, and cross-chain swaps to fiat payments, portfolio management, and a token launchpad – positioning it as an all-in-one Web3 platform rather than merely a crypto wallet. 

Thankfully, it offers multichain functionality, with support for popular chains like Bitcoin, Binance Smart Chain, Ethereum, Solana, Base, and Polygon. This eliminates the need for users to open multiple wallets for different networks as obtainable with chain-specific wallets. And considering its plan is to continue adding more chains through a series of updates, Best Wallet is well-positioned to broaden its reach and functionality. 

It is not without any reason that it has already attracted over 500,000 users, with a 630% MoM growth rate. Top crypto analysts, including ClayBro, have already reviewed the platform, describing it as the best hub for everything crypto.

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