Key Insights
- In the latest crypto news, big banks now treated crypto as a direct threat to core revenues.
- Stablecoins and tokenization challenged traditional banking rails, Coinbase CEO, Armstrong said.
- U.S. policy shifts pushed banks to engage rather than resist crypto.
Global banks now view crypto as an existential threat to their business, according to Coinbase CEO Brian Armstrong. He made the remarks after meetings with bank executives and policymakers at the World Economic Forum in Davos.
Armstrong said senior executives at several major banks no longer dismissed crypto as experimental. Instead, they treated stablecoins, tokenization, and decentralized rails as direct competitors to core banking revenue.
The shift mattered because it reframed the regulatory fight around survival rather than compliance. Banks once sought to slow crypto adoption. Now, some prepared to build or buy exposure.
Crypto News: Banks Shifted From Resistance to Urgency
Armstrong said one executive at a top-10 global bank described crypto as the bank’s “number one priority.” He added the executive also called it an existential issue.
Brian Armstrong shared the comments after a week of closed-door meetings in Davos. He said most bank leaders he met leaned toward participation rather than obstruction.
The tone contrasted sharply with earlier years. Banks once framed crypto as risky or marginal. Armstrong said that stance faded as stablecoin usage expanded globally.
Executives now view blockchain rails as faster and cheaper alternatives to legacy payment systems. That concern drove renewed interest in tokenized assets and settlement infrastructure.
Tokenization and Stablecoins Drew Executive Focus
Armstrong said tokenization dominated discussions at the event. He described it as a trend moving beyond stablecoins into equities, credit, and real-world assets.
He argued tokenization threatened to bypass banks entirely. Asset managers or fintech firms could offer direct market access without custodian or clearing delays.
Armstrong pointed to roughly four billion adults worldwide lacking access to quality investments. He said tokenized products could reach those users directly.
That possibility unsettled banks reliant on brokerage, custody, and settlement fees. Stablecoins already reduced friction in cross-border transfers, eroding payment margins.
Armstrong said executives recognized the risk. He added many explored internal pilots or partnerships to avoid disintermediation.
Crypto News: Regulation Framed the Competitive Battle
Regulation remained a core theme during Armstrong’s meetings. He said political momentum in the United States strengthened sharply.
Armstrong described the Trump administration as the most crypto-forward government globally. He said officials prioritized clarity in market structure and consumer protections.
He highlighted ongoing work around the CLARITY Act. The proposal aimed to define oversight responsibilities for digital assets.
Clear rules mattered for banks and crypto firms alike. Armstrong said regulatory uncertainty previously delayed capital commitments and product launches.
He warned that other jurisdictions already moved faster. China and parts of Asia expanded stablecoin infrastructure aggressively.
Without clarity, Armstrong said the United States risked losing financial competitiveness. With it, banks could legally and at scale integrate crypto services.
AI and Crypto Converged on Payments
Armstrong also discussed artificial intelligence during his Davos recap. He said AI and crypto ranked as the two most discussed technologies.
He argued the technologies complemented each other. AI agents required native digital money for automated payments.
Armstrong said stablecoins fit that role better than traditional accounts. AI agents could not complete standard identity checks.
He added that infrastructure already existed. Usage grew quickly across trading, gaming, and enterprise automation.
Banks faced another challenge there. If AI agents defaulted to stablecoins, traditional rails risked exclusion from future payment flows.
That prospect reinforced urgency among financial institutions. Armstrong said executives increasingly acknowledged the threat.
Banks Weighed Defense and Adoption
Armstrong said most executives he met adopted a pragmatic stance. They accepted crypto’s permanence and explored entry points.
Some banks pursued custody and tokenization services. Others considered partnerships with exchanges and infrastructure providers.
He said a few remained cautious. However, resistance weakened as competitors advanced.
Armstrong did not name the banks involved. He said conversations reflected a broader industry shift.
The message from Davos was clear. Crypto no longer sat outside the financial system.
For large banks, it represented competition, opportunity, and risk simultaneously. Armstrong said ignoring it was no longer viable.
As regulatory frameworks advanced in 2026, he expected faster institutional moves. The banks that adapted early could retain relevance. Those that delayed faced erosion of their core businesses.
Crypto’s role in global finance, Armstrong said, had already crossed the point of reversal.