Several major U.S. banks are now experimenting with stablecoins, crypto custody, and digital-asset trading through pilots conducted with Coinbase, according to CEO Brian Armstrong.
What Happened
Speaking at the New York Times DealBook Summit, Armstrong said top financial institutions are beginning to view crypto infrastructure as an opportunity rather than a threat, according to Bloomberg.
He did not identify the banks participating but warned that firms resisting the shift risk falling behind.
Armstrong appeared alongside BlackRock CEO Larry Fink, marking a rare joint discussion focused on digital assets, tokenization, and the broader transformation of financial markets.
Why It Matters
Their conversation unfolded during a period of renewed uncertainty in crypto prices following steep declines over the past month and lingering doubts about whether traditional finance will follow through on its long-promised plans to integrate crypto services.
Fink acknowledged how drastically his own views have changed. Years ago he dismissed Bitcoin as merely a tool for illicit finance.
Today, BlackRock operates the largest spot Bitcoin ETF in the world. “I see a big, large use case for Bitcoin,” Fink said, noting the shift as one of his most public reversals.
Leaders at other major banks, including JPMorgan’s Jamie Dimon, Bank of America’s Brian Moynihan, and Citigroup’s Jane Fraser have also shown renewed willingness to engage with the asset class.
Morgan Stanley recently began offering crypto trading to E*Trade retail users, reflecting how quickly Wall Street sentiment has shifted.
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The broad embrace of digital assets accelerated after President Donald Trump’s second administration took office, ushering in what supporters describe as the most crypto-friendly policy landscape to date.
Congress and the White House have already delivered one of the industry’s biggest wins: a federal regulatory framework for stablecoins.
None of these developments, however, have prevented the market from sliding.
Crypto prices have been under pressure since an October tariff announcement and further weakened by deleveraging and fading investor confidence. Tokens linked to Trump-aligned projects or personalities have been hit especially hard.
Still, Armstrong remains convinced that the downturn is temporary.
He framed the selloff as a pause before broader adoption of digital representations of stocks, bonds, real estate, and other assets.
Fink reinforced that outlook, pointing to the estimated $4.1 trillion held in digital wallets, mostly stablecoins, as evidence that tokenized assets could unlock far greater utility.
Fink described Bitcoin not as a payments asset but as a hedge against instability.
He said investors tend to buy it out of concern for personal or financial security and lingering anxiety over the long-term erosion of asset values driven by government deficits.
Both executives suggested that crypto’s infrastructure and tokenization capabilities will play an increasingly central role in global finance, even as the market navigates near-term volatility.
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