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Coinbase now holds over $420 billion in digital assets on behalf of its users, surpassing the 21st largest bank in the United States in terms of assets under management (AUM).
According to Coinbase co-founder and CEO Brian Armstrong, the exchange’s AUM would position it as the 21st largest U.S. bank if it were classified as a traditional financial institution.
“If you think of Coinbase like a bank, we now hold about $0.42T in assets for our customers, which would make us the 21st largest bank in the US by total assets, and growing,” he wrote. Coinbase’s $420 billion in AUM is over three times larger than the $112.9 billion managed by New York Community Bancorp (NYCB), which holds the 21st spot among U.S. banks.
Armstrong also said that if Coinbase were categorized as a brokerage firm, it would rank as the 8th largest brokerage by AUM.
In contrast, Coinbase reported a $273 million net profit for the same quarter, marking its first positive earnings report since Q4 2021, as detailed in the company’s shareholder letter. “In the updated financial system, you will have a single primary financial account which serves all these functions. A greater percentage of global GDP will run on more efficient crypto rails over time,” Armstrong stated.
NYCB recently reported a $260 million loss in Q4 2023 following its acquisition of the collapsed, crypto-friendly Signature Bank.
Speaking at EthCC, Turakhia stressed that to onboard the next billion users, the industry must eliminate key friction points.
Despite these advancements, several barriers still hinder mainstream adoption, according to Coinbase’s Senior Director of Engineering, Chintan Turakhia.
Reflecting on his recent time at the World Economic Forum (WEF) in Davos, Armstrong revealed that conversations with major market leaders were dominated by Trump’s plans for digital assets.
More recently, a U.S. federal judge ruled against Coinbase’s argument that it does not qualify as a “statutory seller” under federal law, clearing the way for an investor lawsuit to move forward in New York.
Last week, Coinbase CEO Brian Armstrong said U.S. President Donald Trump’s crypto agenda has become a central topic of discussion across the crypto industry, financial markets, and the tech world.