Coinbase Teams Up With Major US Banks on Stablecoin and Crypto Trading Pilot Programs

Coinbase just pulled Wall Street into its orbit. The exchange is launching pilot programs with major U.S. banks, focusing on stablecoin integration and crypto trading infrastructure. This isn't just a partnership—it's a bridge between traditional finance and the digital asset frontier.

The Banking Gambit

Forget vague "explorations." These are live pilots. The goal? To seamlessly connect bank payment rails with crypto markets, specifically for stablecoin transactions. Think instant settlements, reduced counterparty risk, and a direct pipeline for institutional capital. It's the plumbing that makes the flow of money possible.

Why This Move Cuts Deep

This bypasses years of regulatory hesitation. By bringing banks into the fold as active participants, Coinbase isn't asking for permission—it's building a new standard. The pilots target core banking functions: custody, trading execution, and balance sheet management for digital assets. It turns skeptics into stakeholders.

A Provocative Step Forward

The move signals a seismic shift. When banks start running live crypto operations, the "wild west" narrative crumbles. It validates the entire asset class as a legitimate, operational part of the financial system. Of course, it also gives those same banks a front-row seat to the profits—a classic Wall Street maneuver: first dismiss, then dominate.

The final take? The pilots are a Trojan horse for mainstream adoption. Once the infrastructure is proven inside these banking giants, rolling it out widely becomes inevitable. The era of crypto operating in a parallel financial universe is ending. The new era is one of integration—and the banks, perhaps cynically, have decided it's better to own the casino than to protest outside its doors.

TLDR

• Coinbase CEO Brian Armstrong revealed major US banks are running pilot programs with Coinbase for stablecoins, crypto custody, and digital asset trading at the New York Times DealBook Summit
• Armstrong did not name specific banks but warned institutions that resist crypto adoption will “get left behind”
• BlackRock CEO Larry Fink appeared alongside Armstrong and said he now sees a “use case” for Bitcoin as a hedge against financial and physical security concerns
• BlackRock’s Bitcoin ETF (IBIT) is the largest spot Bitcoin ETF with over $72 billion in market cap since launching in January 2024
• Armstrong called for a Senate vote on the CLARITY Act to establish clear legal definitions for crypto exchanges and token issuers

Coinbase CEO Brian Armstrong announced that several large US banks are working with the crypto exchange on pilot programs. The programs focus on stablecoins, crypto custody, and digital asset trading. Armstrong made the announcement at the New York Times DealBook Summit on December 4, 2025.

BIG BANKS IN TALKS WITH COINBASE

Armstrong reveals major U.S. banks are partnering with #Coinbase for stablecoin payments, crypto custody, and trading integrations. pic.twitter.com/l01C9Mqsej

— Coin Bureau (@coinbureau) December 3, 2025

Armstrong appeared on stage with BlackRock CEO Larry Fink. He did not reveal which specific banks are involved in the pilots. However, he stated that banks embracing crypto will benefit while those resisting it will fall behind.

Imagine opposing a regulated trust charter because you prefer crypto to stay … unregulated. That’s ICBA’s position. It’s another case of bank lobbyists trying to dig regulatory moats to protect their own. From undoing a law to go after rewards to blocking charters, protectionism… https://t.co/200LCbMGa9

— paulgrewal.eth (@iampaulgrewal) November 4, 2025

The announcement shows Wall Street’s growing interest in crypto infrastructure. This comes despite ongoing regulatory challenges facing the digital asset industry. Stablecoins, which are digital tokens backed by cash or similar assets, have become a key area for banks exploring tokenized finance.

Banks Embrace Crypto Technology

Coinbase projects the stablecoin market will reach $1.2 trillion by 2028. The company sees thousands of potential growth paths for the sector. Many US banks have already started innovating with stablecoin technology.

Citi previously announced plans to work with Coinbase on stablecoin payment solutions. The bank projects the stablecoin industry could reach $4 trillion by 2030 in an optimistic scenario. This forecast reflects the banking sector’s growing confidence in digital asset technology.

Armstrong told the summit that top banks view crypto as an opportunity. He emphasized that financial institutions moving slowly on crypto adoption risk being left behind. The CEO did not provide a timeline for when these pilot programs might become full-scale operations.

BlackRock CEO Changes Stance on Bitcoin

Larry Fink’s appearance alongside Armstrong marked a shift in his public position on Bitcoin. Fink previously dismissed the cryptocurrency but now views it differently. He described Bitcoin as a hedge for investors worried about financial and physical security.

“You own Bitcoin because you’re frightened of your physical security, you own it because you’re frightened of your financial security,” Fink said. He sees Bitcoin as protection against currency debasement and growing government debt. Fink clarified he views Bitcoin as a long-term protection tool rather than a speculative asset.

Despite Bitcoin’s price decline in recent months, Fink said he still sees a “big, large use case” for the asset. Armstrong agreed and stated there is “no chance” bitcoin will drop to zero. BlackRock’s iShares Bitcoin Trust (IBIT) launched in January 2024 and has become the largest spot Bitcoin ETF with a market cap exceeding $72 billion.

Call for Crypto Regulation

Armstrong used the platform to push for clearer crypto regulations from Washington. He expressed hope that the US Senate WOULD soon vote on the CLARITY Act. The bill aims to establish legal definitions and responsibilities for crypto exchanges, token issuers, and other digital asset participants.

BlackRock also manages the largest tokenized US Treasury product by market cap. The fund currently holds around $2.3 billion in assets. This demonstrates BlackRock’s commitment to digital asset products beyond Bitcoin.

Armstrong and Fink’s joint appearance signals a potential thaw in relations between traditional finance and crypto. The two executives found common ground on Bitcoin’s value proposition. Their shared perspective may influence other financial leaders considering crypto adoption.

Coinbase is working with major US banks on pilot programs for stablecoins, crypto custody, and trading as Wall Street quietly embraces digital asset infrastructure.