John Deaton Declares: Coinbase and Ripple Are the Future of Banking

The traditional banking system just got served an eviction notice—crypto's moving in.

Pro-XRP lawyer John Deaton drops a truth bomb: Coinbase and Ripple aren't just players—they're rewriting the rulebook. Forget vaults and velvet ropes—blockchain doesn't need them.

Why banks should sweat

24/7 global transactions? Check. No middlemen taking a cut? Obviously. Regulatory headaches? Still there—but at least the tech actually works (unlike some legacy systems *cough* SWIFT *cough*).

The kicker? This isn't some crypto-bro fantasy. Institutional money's already voting with its wallet—while traditional banks still charge $35 for overdrafts like it's 1999.

Pro-crypto lawyer John E. Deaton claimed Coinbase and Ripple Labs are more than just centralized crypto firms. Deaton stated that both entities are part of what he called the banks of the future.

The comments from Deaton come amid increasing interest in crypto. Recent reports revealed that Gen Z and Millennials are shifting from traditional banks to crypto.

This is paving the way for Web3 firms to restructure their business model to capture this emerging market.

Big Steps Ahead for Ripple, Coinbase, & Crypto Firms

“Coinbase, Kraken, Ripple, and Robinhood are the banks of the not-so-distant future,” Deaton wrote in an X post.

He further predicted that Coinbase, Kraken, and Robinhood will become One-Stop shops for all types of loans.

Some of the loans he highlighted included mortgages, consolidation loans, construction loans, car loans, and facilitated p2p loans.

John Deaton also predicted that Ripple will join the other firms in giving out loans despite this not being its primary business offering.

However, he noted that the Ripple entry will depend on its acquisition of Uphold, based on speculations.

The pro-crypto lawyer emphasized that the new financial system is digital. Thus, he noted that crypto-collateral loans, yield, and DeFi that refuse to innovate will die.

According to him, people are continuously seeking higher yields and financial independence. He concluded that stocks from Coinbase (HOOD) and Robinhood (HOOD) are the future blue-chip stocks.

Deaton’s comments are in response to a post from technologist and filmmaker Paul Barron.

According to him, 89% of Gen Z and Millennials have reported intentions to leave their banks.

They plan to shift to crypto and DeFi platforms that offer yield, tokenized stocks, and Web3-related services.

Barron pointed out that banks like Wells Fargo and Bank of America have gone into panic mode due to this decision.

More Crypto Firms to Join?

The latest prediction from the pro-crypto lawyer has led to discussions about more crypto firms joining TradFi.

Crypto firms in regions with innovation-friendly regulations may emerge as competitors or partners to Ripple and Coinbase.

Circle Internet Group stands out as the most likely candidate. Circle is the issuer of USD Coin (USDC), the second-largest stablecoin by market capitalization.

Additionally, the Circle stock (CRCL) exhibited brilliant performance following the IPO launch. Bernstein analysts even forecasted a $230 target for CRCL.

While new crypto firms like Circle can join the TraFi move, challenges lie ahead. Some market participants raised concerns that centralized crypto companies becoming traditional banks feels like a step backward.

They pointed out that true DeFi protocols running on decentralized chains offer the same services without the middlemen.

However, companies like Ripple and Coinbase still rely on banks as middlemen to offer banking services.

With the ongoing pivot, the trend is changing across the board.

Circle and Ripple Banking Take Bold License Moves

Meanwhile, Circle recently applied for a banking license in the United States. Circle aims to create a national trust bank in the US.

If the license is approved, it WOULD allow Circle to settle payments directly, bypassing intermediaries. However, the license would not allow Circle to take cash deposits or make loans.

Following in the footsteps of Circle, Ripple also disclosed plans to apply for a banking license in the US. Ripple CEO Brad Garlinghouse confirmed the details in an X post.

According to the CEO, if approved, the license would allow a new (and unique!) benchmark for trust in the stablecoin market.

The MOVE from Ripple and Circle reflects a broader push by crypto firms amid the emerging regulatory clarity. It is also aimed towards deeper integration with the traditional financial system.