As it grapples with the SEC over regulation of the crypto industry, Coinbase wants to be ambitious. The company is prospecting new outlets for its business such as crypto banking. An area whose supply has been reduced since the crypto industry lost the banks that supported it.
Crypto banking services, an option for Coinbase in the face of the crisis?
Recently, lawyers from crypto firms Coinbase and Ripple met to discuss the challenges of their sector. The two partners discussed the possibility of making Ripple’s asset XRP available again on Coinbase.
Asheesh Birla, one of the company’s executives, delivered this Sunday, May 7, a major detail about Coinbase. The company is reportedly planning to expand its business to include crypto banking services.
This news means that Coinbase could, like BlockFi for example, offer financial services promoting crypto transactions. An offer integrating traditional banking services such as deposits, loans and credit cards.
According to Birla, this development is directly linked to the crisis in the banking sector. She mentions in particular the loss of credibility of the traditional banking system. A crisis of confidence materialized by the sinking of banks like the Silicon Valley Bank (SVB).
But according to her, this is not the most worrying for crypto firms. This is because, she explains, the loss of confidence in the banking sector seems destined to last. Because figures indicate the exposure of nearly 200 American banks to the same risks of shipwreck as the SVB. In this context, while the crypto industry has lost most of its banking support, Coinbase wants to change the situation. And there are plenty of opportunities.
Crypto banking services, a real opportunity?
According to the Coinbase report for the 1er quarter, deposits make up the bulk of the exchange’s revenue over the period. In addition, the platform notes a large increase in its institutional users.
Thus, the income generated thanks to the transactions initiated by the latter increased significantly in 1er quarter. An increase of 67% compared to the figures achieved at the end of the fourth quarter of 2022.
This is without taking into account that Coinbase now generates banking income that is not totally dependent on the crypto market. Maybe it’s time for the company to offer itself as an accessible, efficient, transparent financial alternative for all crypto users?
Receive a digest of news in the world of cryptocurrencies by subscribing to our new service of daily and weekly so you don’t miss any of the essential Tremplin.io!
