Coinbase, the US-based cryptocurrency exchange led by CEO Brian Armstrong, has announced it is managing nearly $420 billion in assets. The company has drawn comparisons to various sectors of the financial world, including banks, brokerage firms, and payment systems.
Asset Value and Competition
Armstrong stated that considering the magnitude of assets managed on behalf of Coinbase’s customers, the company could potentially rank as the 21st largest bank in the US in terms of total assets. Similarly, from a brokerage perspective, it was emphasized that the company positions itself as the eighth largest broker based on managed assets.
Expansion of Financial Functions
Additionally, Coinbase is noted to serve as more than just an investment platform, being utilized for transactions such as spending and borrowing. This indicates the emergence of a new system that offers multiple services through a single primary financial account.
During his statements, Brian Armstrong expressed that the company has reached a competitive position against traditional financial institutions in the financial services sector. His comments included the following sentiments:
