TL;DR

Major US banks are privately testing stablecoin and digital asset services.
BlackRock is shifting sentiment with its leading Bitcoin ETF and tokenized Treasuries.
Coinbase’s plan to build a financial “super app” is causing tension with traditional banks.

A quiet change runs through America’s largest banks. Crypto no longer sits on the sidelines. Major institutions already test stablecoin rails, digital-asset trading tools and custody services away from public view, according to Coinbase CEO Brian Armstrong.

Armstrong described private pilots during a live talk at the New York Times DealBook Summit, where he shared a stage with BlackRock CEO Larry Fink. In earlier years both executives clashed over Bitcoin. During the event, however, their messages converged around the idea that digital assets now hold a concrete role in finance, even as leveraged traders still distort short-term price action.

BlackRock reshapes sentiment with Bitcoin ETF and tokenized Treasuries

The change in tone around Bitcoin owes a lot to BlackRock’s recent track record. Fink no longer speaks as an outsider. His firm already runs the iShares Bitcoin Trust (IBIT), a spot Bitcoin ETF launched in early 2024 that now leads the segment by assets under management, with more than 72 billion dollars in market value.

In parallel, BlackRock pushes ahead in tokenized U.S. Treasuries. Data from RWA.xyz place the asset manager at roughly 2,3 billion dólares in tokenized government debt, ahead of rival issuers. Large banks and asset managers now reference that pool of securities as proof that tokenization can sit on top of traditional fixed income without tearing down legacy structures.

Market participants read those milestones as a signal: heavyweight institutions no longer debate whether Bitcoin or tokenized bonds belong in portfolios. They experiment, file products and scale exposure where demand appears.

Banks test crypto tools while trying to box in stablecoins

Armstrong speaks openly about cooperation with banks. Several large groups already work with Coinbase on stablecoin integration, liquidity and custody. At the same time, the banking lobby tries to limit the reach of stablecoins and of Coinbase itself.

Tensions rose in August, when the Banking Policy Institute (BPI) — chaired by JPMorgan CEO Jamie Dimon — asked lawmakers to curb stablecoin use. The group warned that a large shift of deposits toward stablecoin products could compress the pool of funds available for corporate credit and push borrowing costs higher.

A central complaint centers on the GENIUS Act. The law blocks stablecoin issuers from offering yield directly. However, platforms such as Coinbase still offer rewards on USDC and other regulated coins. Bank lobbyists describe the setup as a loophole that favors crypto platforms over insured lenders. Coinbase, in contrast, frames the same scheme as open competition inside a regulated market.

Coinbase’s “super app” ambition alarms incumbents

Armstrong does not hide his plan for Coinbase. In a September interview with Fox Business, he described a roadmap toward a “super app” for finance. The vision includes payments, credit cards, rewards programs and lending services built on blockchain rails, where users interact with crypto-native accounts instead of classic checking products.

He pointed to everyday card fees and slow settlement as proof of an outdated banking stack. According to Armstrong, a stablecoin-based model can route payments with lower costs and quicker finality for both merchants and users. For large banks, such a design reduces fee income and weakens the hold over customer relationships.

Under that lens, the real risk does not come from isolated Bitcoin ETFs or niche tokenized bonds. The threat comes from a crypto platform that tries to absorb payments, deposits and yield products into a single interface and then offers an alternative to retail banking altogether.

Lobby fight escalates around trust charter and custody rules

Friction climbed again in November. The Independent Community Bankers of America (ICBA) asked regulators to block Coinbase’s application for a national trust charter. The group argued that crypto-custody models still lack a long, proven safety record and therefore should not hold the same regulatory seal as traditional trust banks.

Paul Grewal, chief legal officer at Coinbase, replied on X with direct criticism of banking lobbyists. He accused trade groups of building “regulatory moats” to shield incumbent players from competition. Grewal argued that campaigns against Coinbase frame concerns as consumer protection, while real motives relate to market share and fee protection.

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Filed under: News - @ December 4, 2025 2:29 pm