Coinbase, the leading cryptocurrency exchange in the US, has expanded its reach beyond trading, establishing itself as a major player in the broader financial sector. On February 6, CEO Brian Armstrong announced that Coinbase now holds approximately $420 billion in customer assets, a figure that would place it as the 21st largest bank in the US based on total assets if it were a traditional financial institution.
Armstrong further highlighted Coinbase's growing role in payments, referencing the $30 trillion in stablecoin transactions processed last year, a portion of which facilitated goods and services. This demonstrates the platform's ability to bridge the gap between traditional finance and the crypto ecosystem, allowing users to invest, spend, and borrow within a single platform.
Coinbase's dominance in the US crypto market is further solidified by its control of about 60% of the country's crypto trading volume. The platform also plays a significant role in the burgeoning Bitcoin ETF market, serving as the custodian for nine of the 12 approved Bitcoin ETFs.
Beyond its core operations, Coinbase is actively engaging with government agencies, including the US Marshals Service, which selected Coinbase Prime for custody and trading services of seized digital assets. The exchange is also at the forefront of crypto advocacy, supporting pro-crypto candidates and challenging restrictive regulations hindering the industry's growth.
Coinbase's global expansion continues with recent regulatory approvals in the UK and Argentina. The acquisition of a Cyprus Investment Firm (CIF) license allows Coinbase to offer financial products across the European Economic Area, enabling it to operate under the stringent MiCA regulations.
The company's product ecosystem is also expanding with the launch of cbBTC, a wrapped Bitcoin product, and Base, its layer-2 blockchain network. Both products are experiencing rapid growth, fueled by the increasing demand for decentralized solutions.