Coinbase CEO says Big banks now view crypto as an ‘existential’ threat to their business

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During his trip to Davos for the World Economic Forum, Coinbase CEO Brian Armstrong shared that a top executive at one of the world’s 10 largest banks told him that crypto is now their “number one priority” — and that they view it as “existential.”

Armstrong’s post, shared on X, highlighted a shift in how legacy financial institutions are engaging with crypto. The remark underscores the growing urgency among traditional banks to adapt to crypto infrastructure, particularly as global regulators move closer to establishing clearer rules for digital assets.

Armstrong didn’t name the bank or executive, but said that many financial leaders he met during the weeklong event weren’t just open to crypto — they were actively seeking ways to get in. “Most of them are actually very pro crypto and are leaning into it as an opportunity,” he wrote.

For banks that rely on legacy payment rails, crypto represents both a challenge and an opportunity.

Read more: Bank of America CEO says stablecoins could drain trillions in bank deposits

Tokenization push

As stablecoins and tokenized assets gain momentum, the threat of disintermediation grows. It’s possible that a global asset manager or fintech firm could someday bypass traditional banks entirely by offering direct access to tokenized securities or stablecoin-based transfers — moving value instantly, without clearing delays or middlemen (a core pillar of crypto).

Armstrong said tokenization was one of the most discussed trends at Davos, expanding beyond stablecoins into equities, credit, and other financial products.

He pointed to the estimated 4 billion “unbrokered” adults worldwide who lack access to high-quality investments. Tokenization, he argued, could help close that gap.

“Expect some major progress here in 2026,” he added.

Regulation CLARITY

The Coinbase CEO also noted that political support for crypto in the U.S. appears to be strengthening.

He cited the Trump administration’s push for crypto-focused legislation, such as the CLARITY Act, which aims to provide a regulatory framework for digital assets. Armstrong didn’t touch on his firm’s decision to withdraw support for the crypto market structure bill at the last minute, following which the hearing was delayed.

Read more: Here’s why Coinbase and other companies soured on the major crypto bill

Armstrong described the administration as “the most crypto-forward government in the world” and said the push for clear rules is essential to keeping the U.S. competitive as countries like China invest heavily in stablecoin infrastructure. A theme Donald Trump has also talked about during his speech at Davos.

AI and crypto

Armstrong also said that artificial intelligence (AI) and crypto were the two most-discussed technologies at Davos.

While in the capital markets, AI’s surge has taken the wind out of crypto, Armstrong stressed that the two are closely linked. AI agents, he said, will likely default to using stablecoins for payments, bypassing conventional identity checks and banking restrictions altogether.

The infra exists, and usage is rapidly growing,” he added.

The message from Armstrong’s Davos recap was clear: crypto isn’t a fringe experiment anymore. For at least some of the world’s biggest financial players, it’s now a strategic priority — and possibly a matter of survival.

Read more: Coinbase CEO Brian Armstrong spars with France’s Central Bank chief at Davos over yield and ‘bitcoin standard’

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