Big Banks Are Partnering With Coinbase on Crypto Pilot Programs, Focused on Stablecoins, Crypto Custody and Trading

Coinbase CEO Brian Armstrong has said that some of the biggest banks in the United States are working with the exchange on pilot programs surrounding stablecoins, custody and trading. Armstrong noted that the growing interest from institutions and lawmakers is contributing to pushing digital assets further into the mainstream of finance.

Armstrong Says Big Banks Are Working With Coinbase on Crypto Pilots

Coinbase is collaborating with some of the biggest banks in the United States on pilot projects involving stablecoins, crypto custody and trading, CEO Brian Armstrong announced Wednesday at the New York Times DealBook Summit.

Armstrong described it as an opportunity that the best banks are leaning into, in a discussion with BlackRock CEO Larry Fink. The BlackRock CEO, who in 2017 referred to Bitcoin as an index for money laundering, now oversees the largest exchange-traded fund for Bitcoin.

Fink says that he sees “a big, large use case for Bitcoin”, acknowledging the increasing adoption of cryptos among top financial institutions. While Armstrong didn’t mention particular banks that are working on pilots with Coinbase, he noted that those that are engaging in stablecoins will be left behind.

The news indicates that there is a silent yet increasing adoption of cryptocurrency infrastructure by more traditional financial intermediaries, despite the fact that the general market is coming under more stringent regulation. 

Stablecoin Growth Fueled By Clearer Regulations

Some of the biggest banks have hopped on the crypto bandwagon, particularly stablecoins, since the start of President Donald Trump’s second administration. The GENIUS Act regulating stablecoins, which was enacted on July 18, has moved the asset class from regulatory grey area to being one of the brightest spots in crypto.

In the last few weeks, Sony Bank has announced its stablecoin launch in January 2026, U.S. Bank has completed a pilot test, Western Union has filed for two stablecoins, Citi Bank, JPMorgan, and Bank of America have joined the stablecoin race, and more. 

Coinbase is optimistic that the stablecoin economy will grow to a market size of $1.2 trillion by 2028 since it can see thousands of ways in which the industry can grow. Innovation using stablecoins is already deep-rooted in the innovations of many U.S. banks. A think tank of Citi Institute estimated that the stablecoin market might soar at least to $1.6 trillion by 2030.

When asked about bank anxiety over losing deposits to stablecoins and tokenized systems, Armstrong predicted that banks would soon start embracing stablecoins. He explained that banks are only trying to protect their profit margins now. He adds that “in a year or two”, these banks will come back and agree to pay interest and yield on stablecoins.

Armstrong calls the decision on whether to offer stablecoins and tokenization among banks “the Innovator’s Dilemma.” He explained that the best banks are leaning into the opportunity provided by stablecoins and tokenization, while the ones that are fighting the innovation are going to get left behind.”