Crypto is set up to eat traditional funds as Coinbase focuses on decentralized systems and drives earthquake change in the way global financial services are built.
Armstrong says Crypto eats finance. Coinbase's strategy is now clearer
Brian Armstrong, CEO of Crypto Exchange Coinbase (NASDAQ:COIN), strengthened the company's long-term vision for the industry on May 2nd, saying on social media platform X.
Our paper: Crypto will eat most financial services, and Coinbase is 100% focused on Crypto.
His remarks came when Coinbase rolled out a series of updates across its lending services, particularly when it included USDC loans and Bitcoin-backed credit products.
Max Branzburg, Coinbase's director of consumer products, revealed X is accelerating adoption of USDC-based loans through Morpho Labs, a decentralized lending protocol. He said the loan volume increased from $45 million in May to $14 million in March, $2 million in February and $120 million in January to $120 million. Branzburg says that while $265 million in Bitcoin is currently being used as collateral, more than 100 times remain idle, indicating he sees it as a virtually undeveloped possibility. On April 30, Coinbase announced that Bitcoin-backed loan service is now fully available to all users except New York.
Armstrong placed emphasis on recent milestones, reflecting Brantzberg's optimism about the trajectory of crypto loans. In response to the loan renewal, Armstrong said:
The credit market is running on Onchain. We ultimately hope to strengthen small business loans, mortgages, car loans, non-committed loans and more. Many people around the world have no access to credits. It can be on-chain for more efficient (and global) markets.
The rapid expansion of crypto-assisted lending services highlights a broader trend towards decentralized finance, but some critics argue that these platforms still face regulatory uncertainty and systematic risks. However, proponents argue that the Onchain model could provide a transformational path and democratize access to credit on a global scale.
